TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 105

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

GR 365

IMMEDIATE

CYPHER CAT A

FM FCO 281400Z

CONFIDENTIAL

FRAME EXTERNAL

CONFIDENTIAL

HKK 120/616/11.A

2-

28

TO IMMEDIATE UKREP BRUSSELS TELEGRAM NUMBER 2004 OF 28/10

INFO PRIORITY BRASILIA

√273

NET REC'D

IN REGY

YOUR TELS NOS 6409 AND 6445 (NOT TO ALL)

TEXTILES: BILATERAL NEGOTIATIONS

LAST

273

R$

1. GRATEFUL IF YOU WOULD MAKE THE FOLLOWING POINTS TO COMMISSIONER

DAVIGNON TOMORROW MORNING, 29 OCTOBER.

2. THE UK IS MOST DISTURBED ABOUT INFORMATION REVEALED IN THE

ARTICLE 113 COMMITTEE OVER THE LAST FEW DAYS WHICH LEADS US TO

BELIEVE THAT THERE IS A REAL DANGER OF THE COMMUNITY'S INTERNAL

GLOBAL CEILINGS BEING EXCEEDED FOR CERTAIN GROUP 1 PRODUCTS, PARTICULARLY COTTON YARN AND COTTON CLOTH. THE COMMISSION CHIEF

NEGOTIATOR, MR TRAN VAN THINH, HAS SEEMED RELUCTANT TO REPORT BACK

TO THE COUNCIL FOR THE FRESH MANDATE WHICH WILL BE NEEDED AT LEAST

ON THESE TWO PRODUCTS. THIS IS A MATTER WHICH OUR MINISTERS WILL

VIEW WITH THE UTMOST SERIOUSNESS. THEY WILL UNDOUBTEDLY WANT IT DISCUSSED AT THE NOVEMBER FOREIGN AFFAIRS COUNCIL AND WE SHALL BE

RAISING IT AT THE NEXT MEETING OF COREPER DEPUTIES ON 4 NOVEMBER.

3. PRESSURE ON THE CEILINGS FOR THESE TWO PRODUCTS HAS ALREADY

BECOME EVIDENT FROM A NUMBER OF BILATERAL NEGOTIATIONS BUT THE MOST

IMPORTANT CASE BY FAR IS THAT OF BRAZIL. THE UK WAS ALWAYS OF THE

OPINION THAT THE OFFER TO BE MADE TO BRAZIL AND AGREED AMONG MEMBER

STATES DURING THE FIRST DIVISION OF THE GLOBAL CEILINGS BETWEEN

SUPPLYING COUNTRIES WAS TOO GENEROUS IN COMPARISON WITH THAT ON OFFER

FOR THE OTHER DOMINANT SUPPLIERS. THE COMMISSION ARE NOW PROPOSING

CONSIDERABLE INCREASES FOR COTTON YARN AND COTTON CLOTH FOR BRAZIL,

INCREASES WHICH IN THEMSELVES WOULD INEVITABLY CAUSE THE OVERALL

/CEILINGS

CONFIDENTIAL

Page 105Page 106

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