TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 118

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ARGENTINA HAD INADVERTENTLY BEEN OMITTED FROM EARLIER CALCULATIONS

ALTHOUGH THE COMMISSION HAS EMPHASISED THAT THE UK'S SHARE OF THE QUOTA FOR ARGENTINA WOULD IN ANY CASE BE ZERO). WE OPPOSED THE SOLUTION AS DID THE ITALIANS, DUT TRAN CLEARLY INTENDS TO IGNORE THE OBJECTIONS IN THE HOPE OF ACHIEVING AN EARLY AGREEMENT WITH COLOMBIA. IN THE LIGHT OF HIS REACTION WE NOTED THAT THE COMMISSION

APPEARED TO INTEND TO TAKE ITS RESPONSIBILITIES,

PAKISTAN.

7. TALKS START TODAY.

SRI LANKA.

8. THE COMMISSION REPORTED THAT THE NEGOTIATIONS APPEARED TO BE

ABOUT TO END. THE SRI LANKA DELEGATION TOOK THE VIEW THAT THE COMMUNITY'S PROPOSALS MADE NO PROVISION FOR THE FACT THAT THEY WERE TRYING TO DEVELOP A TEXTILE INDUSTRY. THEIR MANDATE COULD NOT BE RECONCILED WITH THE COMMUNITY'S APPROACH: THEY WERE STILL INSISTING THAT THEY SHOULD BE GIVEN THREE YEARS' IMMUNITY FROM QUANTITIVE RESTRICTIONS IN ORDER TO ESTABLISH A BEACHEAD IN THE COMMUNITY TEXTILE MARKET. THEIR GARMENT INDUSTRY WAS UNDERGOING VERY RAPID DEVELOPMENT. THE COMMISSION REPORTED THAT SHIRT MANUFACTURE FOR INSTANCE WOULD BY THE END OF THIS YEAR BE PRODUCING 15M PIECES PER ANNUM AND BY THE END OF 1979 33M PIECES PER ANNUM, AND THAT OF THESE QUANTITIES THE SRI LANKANS HOPED TO SEND 30% TO THE COMMUNITY. THIS MEANT THAT THEY WERE REQUESTING A QUOTA OF

10-11M SHIRTS IN THE COMMUNITY FOR 1979 AND WERE INSISTING THAT

THIS QUOTA SHOULD BE AT THE EXPENSE OF CURRENTLY DOMINANT SUPPLIERS.

GROWTH IN BLOUSES WOULD BE LESS RAPID BUT THE 1979 REQUEST FOR

IMPORTS INTO THE COMMUNITY WAS OF THE ORDER OF 6-7M PIECES. THE

COMMISSION ACKNOWLEDGED THAT THESE DEMANDS WERE SO EXAGGERATED THAT THERE WAS NO CHANCE OF NEGOTIATIONS REALLY STARTING, IT SEEMED

LIKELY THAT THE SRI LANKANS WOULD NOT FEEL ABLE TO INITIAL ANY

AGREEMENT WITH THE COMMUNITY.

4.

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/ (111) DRAFT AGREEMENT.