TNAG-0630-FCO40-778-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 26

GR 500

IMMEDIATE

DESK BY 1909802

RESTRICTED

CV

R/CAT A

FM UKREP BRUSSELS Ø91031Z

RESTRICTED

FRAME EXTERNAL

DESKBY 106920Z

TO IMMEDIATE FCO TEL NO 5930 OF 8/10.

INFO UKMIS GENEVA AND WASHINGTON

ARTICLE 113 COMMITTEE (FULL MEMBERS):

7 OCTOBER: MTNS: SAFEGUARDS

MY IMMEDIATELY PRECEDING TELEGRAM

13967

рес

7.

226

1. THERE WAS A DISCUSSION ON THE SAFEGUARDS ISSUE PROMPTED BY

DENMAN (COMMISSION). HE ACKNOWLEDGED THE IMPORTANCE OF THIS FOR

A NUMBER OF MEMBER STATES AND SAID THAT THE COMMISSION COULD

CERTAINLY ENVISAGE INTRODUCTION OF SELECTIVITY BUT WITH THE

ACCOMPANIMENT OF SURVEILLANCE AND OTHER SAFEGUARDS (EG A GUARANTEE

THAT IMPORTS WOULD RETURN TO PREVIOUS LEVELS IN A CERTAIN NUMBER OF YEARS). AMENDMENT OF ARTICLE XIX WOULD BE UNNEGOTIABLE: AND THE

DEVELOPING COUNTRIES WERE UNLIKELY TO AGREE TO AN INTERPRETATIVE NOTE

WITHOUT VERY STRINGENT CONDITIONS. HE THOUGHT THE JAPANESE WOULD,

HOWEVER, BE PREPARED TO ENVISAGE A SELECTIVE ARTICLE XIX WITH

SAFEGUARDS a

2. GRAY (UK) UNDERLINED THE COSMETIC AND REAL IMPORTANCE ATTACHED

TO THIS ISSUE IN THE UK. UK MINISTERS HAD CERTAINLY NOT ABANDONED

THE IDEA OF AN AMENDMENT TO ARTICLE XIX. THIS MIGHT NOT BE

NEGOTIABLE BUT IT WAS CLEARLY NECESSARY TO HAVE THE

POSSIBILITY OF DEFENCE AGAINST SUDDEN LARGE INCREASES IN IMPORTS

ESPECIALLY FROM ASIATIC SOURCES. THE IMMEDIATE REQUIREMENT WAS

AGREEMENT IN PRINCIPLE TO A SELECTIVE SAFEGUARD ON THE PART OF THE

USA. THEY WOULD PROBABLY SEEK TO RELY ON ORDERLY MARKETING ARRANGE-

MENTS, BUT WHATEVER THE AMERICANS FELT, THE VOLUNTARY RESTRAINT

ARRANGEMENT MIGHT WELL CONTINUE TO PLAY A USEFUL PART. THIS GULF

BETWEEN COMMUNITY AND US THINKING WOULD HAVE TO BE BRIDGED.

RESTRICTED

THE

/Ux.