TNAG-0630-FCO40-778-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 52

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5. DISCUSSION ON THE SXIT THRESHOLD FOR PRODUCTS IN GROUPS 3-5 WILL CONTINUE ON THURSDAY.

6. APPLICATION OF IMPORT ARRANGEMENTS (SECTION 111.B, PAGES 7-8). SUBJECT TO AN ITALIAN RESERVE, IT WAS AGREED THAT THE DIRECTIVE

FOR GROUP 1 PRODUCTS SHOULD BE STRENGTHENED TO MEAN THAT THE

COMMUNITY WILL NEGOTIATE A QUOTA SYSTEM WITH ALL SUPPLIER COUNTRIES

THAT COME TO THE NEGOTIATING TABLE, THOUGH THERE CAN DE JUSTIFIED

EXCEPTIONS.

7. THE NOTE ON PAGE 8 (NB. IN ORDER TO

9 3 ) CAUSED PROBLEMS

FOR SEVERAL DELEGATIONS INCLUDING OURS, ON THE GROUNDS THAT

IT APPEARS TO PROPOSE A DEROGATION FROM THE BRUDEN-SHARING

FORMULA. IT IS BEING REWRITTEN BY THE PRESIDENCY AND THE SECRETARIAT.

8. REGIONALLY SENSITIVE PRODUCTS (SECTION IV, P.2). THIS WAS AGREED BY ALL EXCEPT THE U.K. DELEGATION. WE MAINTAINED A

RESERVE, ARGUING THAT THE SYSTEM HERE PROPOSED DEPARTED FROM THE

CONCEPT OF REGIONAL GLOBALIZATION AS EXPOUNDED IN THE DAVIGNON

DOCUMENT. WE ADDED THAT BEFORE ONE COULD TEST THE EFFICACITY OF IMPORT STABILISATION MEASURES UNDER THIS FORMULA, ONE NEEDED FIGURES (NOT YET AVAILABLE) FOR COMMUNITY GROWTH RATES.

9. LIST OF SUPPLIER COUNTRIES (SECTION V, P. 10), AND COUNTRY COVERAGE (ANNEX 1). THE COMMISSION (TRAN) SAID THAT THE FOLLOWING

COUNTRIES HAD AGREED TO OPEN ENGOTIATIONS: HONG KONG (STARTING NEXT WEEK, INDIA, BRAZIL, HUNGARY, POLAND, ROMANIA, MACAO AND SOUTH KOREA (THIS LATTER STARTING IN NOVEMBER). IN THE LIST IN THE ANNEX, ARGENTINA, SRI LANKA, PHILIPPINES AND INDONESIA WERE ADDED

TO THE CATEGORY OF IMPORTANT SUPPLYING COUNTRIES WITH WHOM

THE COMMUNITY ACKNOWLEDGED IT NECESSARY TO CONCLUDE AGREEMENTS (ON THE GROUNDS THAT IT COULD OTHERWISE BE SAID THAT THE COVERAGE

OF BILATERAL AGREEMENTS WAS TOO INCOMPLETE TO PERMIT RENEWAL OF THE MFA).

10, PROBLEMS RELATING TO NEGOTIATING DIRECTIVES (PAGE 11). (A) G S P. THE COMMISSION CONTINUE TO INSIST ON THE CRITICAL

IMPORTANCE OF THIS ELEMENT IN THEIR NEGOTIATING ARMOURY. THE

GERMANS SAID EVENTUALLY THAT THEY COULD AGREE TO TRAN'S PROPOSAL

BEING LOOKED AT FURTHER IN THE COMPETENT COUNCIL GROUPS AND

Th

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/PERHAPS