TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 6

GR 500

PRIORITY

CYPHER/CAT A

FM UKREP BRUSSELS 26175OZ

RESTRICTED

RESTRICTED

TO PRIORITY FCO TELEGRAM NUMBER 4903 OF 26 JULY

INFO PRIORITY UKMIS GENEVA

20 JUL 1977

HKK 121616//

LASI

TEXTILES WORKING GROUP : 26 JULY

134

SUMMARY

1. THE COMMISSION GAVE A BRIEF ACCOUNT OF WHAT HAPPENED AFTER THE

CLOSE OF THE TEXTILES COMMITTEE IN GENEVA AND EXPLAINED THEIR VIEWS

ON THE SHAPE OF THE BILATERAL AGREEMENTS.

DISCUSSION

MFA

2. THE COMMISSION CIRCULATED A SUMMARY OF THE CONCLUSIONS BY THE

CHAIRMAN OF THE TEXTILES COMMITTEE (TEXT IN MIFT). TRAN ADDED THAT AFTER THE CLOSE OF THE TEXTILES COMMITTEE THE USA WITH THE AGREEMENT

OF THE COMMISSION HAD SECURED THE OPENING OF A PROTOCOL. THIS WAS FOR

SIGNATURE AFTER 15 DECEMBER BY PARTIES TO THE MFA WHO COULD AGREE TO RENEWAL ON THE CONDITIONS IN COMTEX W/44 (THE TRIPART ITE TEXT). THE COMMISSION HAD GONE ALONG WITH THIS MOVE TO ENSURE THE

CONTINUED ADHERENCE OF HONG KONG AND SOUTH KOREA TO THE TRIPARTITE

APPROACH. THE COMMUNITY'S DECISION WHETHER OR NOT TO SIGN WOULD

DEPEND ON THE SATISFACTORY CONCLUSION OF THE BILATERAL AGREEMENTS.

NEWS OF THE PROTOCOL APPEARED TO TAKE DELEGATIONS BY SURPRISE AND

THERE WERE NO COMMENTS.

BILATERAL AGREEMENTS

3. TRAN EXPLAINED THAT THE COMMISSION INTENDED TO ADOPT AN AMERICAN

TYPE COMPREHENSIVE APPROACH FOR ALL THE BILATERALS. PRODUCTS WOULD

BE DIVIDED INTO FOUR CATEGORIES:

(A) THOSE SUBJECT TO GLOBAL IMPORT CEILINGS:

(B) OTHER HIGHLY SENSITIVE PRODUCTS (INCLUDING REGIONALLY SENS IT IVE PRODUCTS) WHERE THE COMMISSION WOULD SEEX TO HOLD INCREASES IN IMPORT

PENETRATION TO A FEW POINTS:

(C) LESS SENSITIVE PRODUCTS WHERE GROWTH RATES WOULD BE AROUND THE 6% NORM:

RESTRICTED

?

/(D) FOR