TNAG-0630-FCO40-778-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 36

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HE HOPED THAT IT WOULD BE UNDERSTOOD THAT IN A MATTER OF SUCH POLITICAL IMPORTANCE AND WHERE THE FIGURES HAD ONLY JUST BECOM AVAILABLE IT WOULD TAKE HIS AUTHORITIES SOME TIME TO CONSIDER THE IMPLICATIONS OF THE PACKAGE. TRAN POINTED OUT THAT THE COMPROMISE (1.E. 0.6 PERCENT GROWTH BUT WITH THE USUAL BURDEN SHARING FORMULA NOT APPLYING TO THE UK) WOULD OFFER BRITAIN A LOWER LEVEL OF COTTON YARN IMPORTS IN 1981 THAN IN 1976.

SARDI (ITALY) FLOATED A COSMETIC GLOSS ON THE 0.6 PERCENT GROWTH FIGURE. HE SUGGESTED THAT THE DOCUMENT SHOULD CONTAIN A FIGURE

OF ONLY 0.3 PERCENT BUT THAT THERE SHOULD BE A GENTLEMEN'S AGREEMENT

THAT THE COMMISSION COULD GO UP TO THE HIGHER FIGURE IF NECESSARY IN THE NEGOTIATIONS. THE COMMISSION ACCEPTED THIS.

5a (B) GROWTH RATES AND REGIONAL SENSITIVITY

THE COMMISSION ARGUED, AND OTHER MEMBER STATES SEEMED TO AGREE, THAT ALTHOUGH ALL THE DETAILED WORK HAD NOT BEEN COMPLETED ANY

REMAINING PROBLEMS SHOULD BE IRONED OUT IN THE NORMAL WAY IN THE

ARTICLE 113 COMMITTEE WHICH WILL MEET DAILY THROUGH THE COURSE OF

THE NEGOTIATIONS. GOLDSMITH EXPLAINED THAT WE NEEDED TO SEE THE

EXACT IMPLICATIONS FOR THE PATTERN OF IMPORTS INTO THE UK

OF THE FIGURES FOR EACH SUPPLYING COUNTRY AND FOR EACH PRODUCT.

THERE WERE PROBLEMS OF REGIONAL SENSITIVITY FOR PRODUCTS IN GROUP

2 AND OTHERS WHERE WE NEEDED TO KNOW IN ADVANCE HOW THE PROTECTIVE

MECHANISMS WOULD BE TRIGGERED. HE REMINDED THE MEETING OF THE

PROVISIONS IN THE DAVIGNON DOCUMENT FOR TACKLING THE PROBLEM

OF CUMULATIVE DISRUPTION ON A REGIONAL LEVEL. THE GERMANS AND THE

COMMISSION SAID THAT THE UK SHOULD NOT TRY TO MAKE THINGS IMPOSSIBLE

FOR THE COMMISSION: IT WAS UNREALISTIC - AND CONTRARY TO THE MANDATE

TO EXPECT THAT EVERY DETAIL COULD BE WORKED OUT IN ADVANCE. THE

GERMANS ADDED THAT THEY HAD MADE GREAT CONCESSIONS TO OTHER DELEGAT-

TONS IN THIS AREA AND WARNED THAT THEY MIGHT HAVE TO CONSIDER

WITHDRAWING THESE CONCESSIONS. OUR ATTENTION WAS DRAWN TO THE

PROVISIONS ON PAGES 9 AND 10 OF THE DRAFT DIRECTIVE (S/1539/77)

FOR TACKLING SENSITIVE PRODUCTS AT REGIONAL LEVEL.

命

6.

(C) REVISION CLAUSE FOR SENSITIVE PRODUCTS

GOLDSMITH EXPLAINED THE UK'S OBJECTION TO A PROCEDURE THAT COULD

INVOLVE AUTOMATIC INCREASES IN RATES OF GROWTH IF CONSUMPTION ROSE,

WE WOULD PREFER A SYSTEM THAT ALLOWED FOR SUCH INCREASES (OR

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/DECREASES)