TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 115

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GRS 1350

IMMEDIATE

CYPHER/CAT A

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FROM UKREP BRUSSELS 271155Z

RESTRICTED

FRAME EXTERNAL

HKK 121 16164

RECEIVED IN REGISTRY NO.

3 - NOV 1977

82

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DESKBY 271330Z

TO IMMEDIATE FCO TELNO 6409. OF 27TH OCTOBER 1977

INFO ROUTINE BRASILIA, COLOMBO,

INFO SAVING MANILA, ISLAMABAD, BOGOTA,

LAST

MULTIFIBRE ARRANGEMENT BILATERAL NEGOTIATIONS: PROGRESS REPORT NO 3 (26 OCTOBER).

A. SUMMARY.

1. THE COMMISSION, AFTER FURTHER ATTEMPTS TO PERSUADE THE COMMITTEE TO ADJUST THE GLOBAL CEILINGS ON COTTON YARN AND COTTON CLOTH, SAID THAT THEY WOULD COME BACK TO THE COUNCIL FOR A NEW MANDATE ON THESE PRODUCTS, THEY WERE PRESSED BY MEMBER STATES TO FURNISH A FIRM AND QUANTIFIED STATEMENT OF WHAT INCREASES SHOULD, IN THEIR VIEW, BE MADE TO THE GLOBAL CEILING TO OBTAIN A MARGIN NECESSARY TO ACHIEVE SUCCESS WITH THE MAIN NEGOTIATING PARTNERS. THE COMMISSION PROPOSED PARTICULARLY LARGE DEVIATIONS IN THE CASE OF BRAZIL, AND ANNOUNCED THEIR INTENTION OF TAKING THEIR RESPONSIBILITIES IN NEGOTIATIONS WITH COLUMBIA AND THE PHILIPPINES. NEGOTIATIONS WITH SRI LANKA ARE BREAKING DOWN.

B. ARTICLE 113 COMMITTEE, WEDNESDAY 26 OCTOBER.

(1) COTTON YARN AND CLOTH.

2. WE SAID THAT THE GLOBAL CEILINGS IN S/1509 WERE THE MOST IMPORTANT FIGURES IN THE MANDATE AGREED BY THE COUNCIL. THERE WAS AN OVERRIDING NEED TO ACHIEVE STABILISATION AND THIS PART OF THE COMMISSION'S MANDATE SHOULD BE GIVEN PRIORITY OVER ANY OTHER CONSIDERATION, INCLUDING THE DESIRE TO REACH EARLY AGREEMENT WITH THE NEGOTIATING PARTNERS. 15, AS THE COMMISSION WERE NOW SAYING, THE

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CEILINGS WERE