TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 110

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TO ROUTINE FCO TEL NO 6472 OF 28/10

INFO COLOMBO SINGAPORE NEW DELHI BRASILIA BOGOTA

INFO SAVING TO MONTEVIDEO BUDAPEST WARSAW AND BUCHAREST

MULTIFIBRE ARRANGEMENT

BILATERAL NEGOTIATIONS:

F.

PROGRESS REPORT NO 4 (27-28 OCTOBER)

R:

A.

SUMMARY

1.

AGREEMENTS INITIALLED WITH SINGAPORE, COLOMBIA AND MACAO. SLOW PROGRESS ON OTHER FRONTS, AND FAILURE WITH SRI LANKA,

B. ARTICLE 113 COMMITTEE 28 OCTOBER

(1)

DRAFT AGREEMENT

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2. THERE HAS STILL BEEN NO SERIOUS DISCUSSION OF THE DRAFT AGREE-

MENT A STATE OF AFFAIRS WHICH EVIDENTLY SUITS THE COMMISSION. IN THE COURSE OF A DISCUSSION ON THE HONG KONG DRAFT (PARA 13 BELOW) ABBATE (COMMISSION LEGAL SERVICES) PERMITTED HIMSELF THE ASSERTION THAT THE COMMISSION'S DRAFT AGREEMENT ACCURATELY REFLECTS, IN EVERY DETAIL, THE COUNCIL MANDATE, AND ADDED TEASINGLY THAT IT WAS NOW UNTHINKABLE THAT MEMBER STATES SHOULD ATTEMPT TO MAKE MAJOR CHANGES

UNLESS THESE WERE IN THE DIRECTION OF CONCESSIONS TOWARDS THE SUPPLYING COUNTRIES. THE HOUR BEING LATE, THE CHAIR DID NOT PERMIT DISCUSSION OF THIS PROVOCATIVE THEORY.

(11) ORIGIN

3. IT LOOKS AS THOUGH THE COMMISSION'S PROPOSALS ON NEW ORIGIN

RULES MAY HAVE SUCCUMBED TO OUR CRITICISMS, WHICH WERE SUPPORTED BY THE GERMANS.

(111) FLEXIBILITY

4.

A FURTHER DISCUSSION CONCLUDED WITH AGREEMENT ON THE PERCENT- AGES OF FLEXIBILITY (PARA 11 OF OUR TEL NO 6409 REFERS) BY EIGHT DELEGATIONS ON THE BASIS THAT THESE REPRESENTED FIRM MAXIMA,

THE

CONFIDENTIAL

GERMANS