TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 92

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5.

The effectiveness of this voluntary restraint arrangement de- pends, however, on the Community introducing a system of import licences. A system of this kind is necessary not only for checking whether Macao keep to he agreed limits but also in order to prevent exporters from evading export controls by sending goods to the Community via an inter- mediate destination exports to which are not subject to control.

6.

In order to prevent the businessmen concerned from evading the restrictions by exporting goods in advance, the Commission decided to introduce the import arrangements mentioned under 5 by adopting Regulation (EEC) No 1176/77 of 31. May 1977 under the emergency procedure laid down in Article 12 of Regulation (EEC) No 1439/74.

7.

Article 12 (6) of Regulation (EEC) No 1439/74 states that measures

adopted by the Commission pursuant to that Article must be followed within ten working days by a proposal to the Council on appropriate

measures which could be taken by the Council to replace the emergency

measures adopted by the Commission.

It should be pointed out that Commission regulations adopted under

Article 12 of Regulation (EEC) No 1439/74 expire six weeks after their

entry into force unless they are confirmed by the Council.

The Commission accordingly proposes that the Council adopt the

regulation, the proposal for which is attached and which is designed to provide confirmation of the measures adopted by the Commission Re- gulation referred to under 6 above.