TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 11

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ARTICLE 3 THERE WAS NO FURTHER DISUCSSION FOLLOWING THURSDAY'S MEETING AT WHICH FRANCE, SUPPORTED BY THE U.K., GERMANY ITALY AND THE NETHERLANDS OPPOSED THE WAIVER OF THE EEC'S GATT ARTICLE XIX RIGHTS. THE COMMISSION SAID THAT THEY WERE FULLY INFORMED OF THE VIEWS OF MEMBER STATES BUT DID NOT PROMISE TO

TAKE THEM INTO ACCOUNT.

ARTICLE 5 THE COMMISSION'S PROPOSALS APPEARED TO BE GENERALLY

ACCEPTABLE.

ARTICLE 6 THE COMMISSION CONFIRMED THAT THEY WOULD SEEK TO

NEGOTIATE A PRICE CLAUSE WITH THE STATE TRADERS.

ARTICLE 8 THE COMMISSION CIRCULATED FIGURES (COPIES WITH FARRY) WHICH INDICATED THAT THE AGREED TRIGGER LEVELS WERE

IN PRACTICE VERY LOW IN MANY CASES.

GROUP 1: THE U.K. AND IRELAND INSISTED THAT ANY AGREEMENT ON A UNIFORM 0.2 PER CENT TRIGGER LEVEL FOR ALL GROUP 1 PRODUCTS WAS STRICTLY CONDITIONAL UPON SATISFACTORY PROVISIONS FOR THE

ARTICLE AS A WHOLE.

GROUP 2: THE COMMISSION AND THE GERMANS ARGUED THAT THE COMMISSION'S FIGURES DEMONSTRATED THAT THE 2.5 TRIGGER WAS 'ABSURD'. THE U.K. SUPPORTED BY FRANCE, ITALY, AND IRELAND,

INSISTED THAT THE 0.5 TRIGGER WAS ESSENTIAL.

GROUPS 3 6: THE U.K. WITH SUPPORT FROM OTHER MEMBER STATES ARGUED THAT BOTH TRIGGERS WERE ESSENTIAL. THE COMMISSION EMPHASISED THE DIFFICULTY OF SPECIFYING ANY TRIGGER LEVELS FOR THESE GROUPS. AS A COMPROMISE SOME MEMBER STATES APPEARED TO BE WILLING TO CONSIDER REVERSION TO THE MANDATE PROPOSALS ($/1509 P6) 1.E. AN AUTOMATIC 'U.S. CLAUSE AND AGREEMENT IN THE 113 COMMITTEE ON THE

INTERNAL OPERATION OF THE TRIGGER.

REGIONAL TRIGGER: U.K. AND ALL OTHER MEMBER STATES EXCEPT GERMANY AND DENMARK INSISTED THAT THIS WAS ESSENTIAL. THERE EAS HOWEVER SOME DISPOSITION TO DROP THE LOWER (25 PER CENT) REGIONAL TRIGGER FOR GROUP 2 PRODUCTS IF THIS WOULD MAKE THE COMMISSION'S

NEGOTIATING TASK EASIER.

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