TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 119

RESTRICTED

(111) DRAFT AGREEMENT.

ORIGIN,

9. THERE WAS A BRIEF AND INCONCLUSIVE DISCUSSION OF THE PROBLEM OF DEFINING ORIGIN, AS RAISED IN TRAN'S TELEX TO MEMBER STATE CAPITALS (OUR TELNO 6308). THE DISCUSSION WILL BE RESUMED, AND, IT IS HOPED, CONCLUDED, IN THE ORIGINS COMMITTEE THIS AFTERNOON.

FLEXIBILITY.

10. THE COMMITTEE DISCUSSED ARTICLE 5 OF THE DRAFT AGREEMENT ON THE BASIS OF FIGURES SUPPLIED BY THE COMMISSION TO FILL IN THE

BLANKS IN THE DRAFT.

11. THE GROUPS HAVE BEEN SLIGHTLY REORGANISED AND THE FIGURES

PROPOSED READ AS FOLLOWS:

ANTICIPATION

CARRY OVER

SWING

GROUP 1 4%.

GROUPS 2,3,4 AND 6 5%. GROUP 5 7%.

- 5,7 AND 10% RESPECTIVELY.

0,5 AND 10% RESPECTIVELY

CUMULATION OF ANTICIPATION AND CARRY-OVER

8,10 AND 15% RESPECTIVELY.

THERE WOULD BE NO SWING WHATEVER ON GROUP 1 PRODUCTS. SWING WOULD BE AUTOMATIC WITHIN OTHER GROUPS BUT WOULD REQUIRE COMMUNITY AUTHORISATION AS BETWEEN GROUPS. THE COMMISSION CONFIRMED, IN RESPONSE TO OUR QUESTIONS, THAT THESE FIGURES REPRESENTED THE MAXIMA TO WHICH THEY INTENDED TO GO, NOT THEIR OPENING BIDS WITH

THE NEGOTIATING PARTNERS.

12. GENERAL RESERVES WERE EXPRESSED BY ALL DELEGATIONS, THE GERMANS ARGUING THAT THESE FIGURES WERE TOO LOW AND ALL THE OTHER DELEGATIONS ARGUING THE CONTRARY. DISCUSSION WILL BE RESUMED

AT AN EARLY OPPORTUNITY,

- 5-

RESTRICTED

(IV) COMMENT.