TNAG-0630-FCO40-778-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 39

ford

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TO IMMEDIATE FCO TELEGRAM NUMBER 5857 OF 6 OCTOBER

MIPT: TEXTILES WORKING GROUP, 6 OCTOBER: OTHER ITEMS DI SCUSSED

1. "'BASKET' SYSTEM (PAGE 6)

YESTERDAY'S PROPOSALS (PARA 4 OF MY TELNO 5941) WERE SLIGHTLY MOD-

IFIED, THE THRESHOLD FIGURE OF 0.5% OF COMMUNITY EXPORTS WHICH

SHOULD BE REACHED BEFORE THE CRITERIA FOR EXIT FROM THE BASKET’*

ARE TRIGGERED WILL BE PLACED IN A FOOTNOTE TO READ AS FOLLOWS:

**IT BEING UNDERSTOOD THAT THIS WILL NORMALLY APPLY FOR PRODUCTS

WITH 58 IMPORT PENETRATION AT COMMUNITY LEVEL'',

2. THERE WAS A LENGTHY DISCUSSION OF THE EXIT THRESHOLD FOR PRODUCTS

IN GROUPS 3-5. ALL DELEGATIONS EXCEPT THE GERMANS WERE ABLE TO AGREE

ON FLOOR AND CEILING FIGURES OF 2% AND 4% FOR BOTH GROUPS 3 AND 4

AND 4 AND 7% FOR GROUP 5. IN VIEW OF THE GERMAN RESERVATION, TRAN (COMMISSION) PROPOSED TO RETURN TO A UNITED STATES-TYPE' CLAUSE

(A CONSULTATION CLAUSE ALONG THE LINES OF THE RECENT US-HONG KONG TEXTILES AGREEMENT) FOR THESE GROUPS OF PRODUCTS. SEVERAL DELEGAT-

TONS INCLUDING OURSELVES PLACED RESERVATIONS ON THIS.

FCO ADVANCE TO:

FCO

CAB

DOI

**L

STERN EID(E)

HARRIS

RIDLEY, MISS LOWNE, FARRY

DOT

10.

HELLINGS, LOCKHEED, HALL CRE1

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