TNAG-0630-FCO40-778-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 88

GR 656

IMMEDIATE

CYPHER/CAT A

FM UKREP BRUSSELS B31739Z

CONFIDENTIAL

CONFIDENTIAL

HKK. 121/616/1.

پارما

- 5 OCT

FRAME EXTERNAL

ixen

PA

DESKBY £409002

TO IMMEDIATE F C O TELEGRAM NUMBER 5779 OF 3 OCTOBER.

MANDATE FOR M F A BILATERAL NEGOTIATIONS,

MY TELNO 5725

1. FOLLOWING TELECON STERN/ELLIOTT WE SPOKE (IN SIR R DENMAN’S ABSENCE) TO CASPARI, DEPUTY DIRECTOR-GENERAL, COMMISSION DG 1.

2. WE TOLD CASPARI THAT WE WERE CONCERNED ABOUT FOUR MAIN

ELEMENTS IN THE CURRENT TEXTILE DISCUSSIONS. THE U.K. WANTED1-

(1) ZEPO GROWTH FOR COTTON YARN

11) AN EFFECTIVE MECHANISM FOR STOPPING IMPORTS ONCE CEILINGS

WERE REACHED

(111) GROWTH RATES TO BE IN INVERSE PROPORTION TO PENETRATION

RATES.

IN ADDITION, WE WERE WORRIED ABOUT A NEW PROPOSAL WHICH

HAD EMERGED IN THE ARTICLE 113 COMMITTEE AT THE END OF LAST WEEK,

NAMELY

(IV) THE ABANDONMENT OF GLOBAL CEILINGS ON ALL BUT GROUP 1 AND

A FEW OTHER PRODUCTS. OUR CALCULATIONS SHOWED THAT THE REMOVAL OF GLOBALISATION, COUPLED WITH THE SUGGESTED USE OF DIFFERENT BURDEN SHARING ARRANGEMENTS, WOULD HAVE A DISPROPORTIONATE EFFECT ON THE U.K.'S SHARE OF CERTAIN

IMPORTS.

CONFIDENTIAL

/3. WE

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