TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 149

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6. PACHT'S REFERENCE TO OUR REGIONAL RESTRAINTS RAISED A FLURRY OF INTEREST AND SUSPICION AMONG OTHER DELEGATIONS WHICH THE COMMISSION WERE IN NO POSITION TO QUELL. THE GERMANS COMPLAINED THAT REGIONAL RESTRAINTS SHOULD HAVE BEEN, AND IN FUTURE SHOULD BE DISCUSSED IN THE ARTICLE 113 COMMITTEE BEFORE NEGOTIATIONS STARTED, THE BELGIAN,

ITALIAN AND FRENCH DELEGATIONS ANNOUNCED THEIR INTENTION OF

EXAMINING THEIR OWN POSITION ON GROUP 2 PRODUCTS OVERNIGHT AND OF

ASKING FOR REGIONAL RESTRAINTS IF THEY MET CRITERIA SIMILAR

TO THOSE WHICH APPEARED TO JUSTIFY THE RESTRAINTS OBTAINED FOR THE

UK.

7. PACHT AND TRAN ASKED THE COMMITTEE TO SHOW A MORE MATURE

ATTITUDE. THE RESTRAINTS FOR THE UK ON THESE PRODUCTS FOR THIS

SUPPLIER WERE ENTIRELY JUSTIFIED BY THE PROVISIONS OF THE MANDATE (PAGE 10 OF S/1509). THE UK HAD EXTREMELY HIGH IMPORT PENETRATION

RATES. THE PROVISIONS OF THE MANDATE COULD EQUALLY WELL BE APPLIED

ONCE THE AGREEMENTS HAD BEEN SIGNED IF THE SITUATION IN ANY MEMBER

STATE WARRANTED IT. EVERYONE'S INTERESTS WERE FULLY PROTECTED: THE

NEGOTIATIONS WOULD BE JEOPARDIZED BY A PROLIFERATION OF REGIONAL

RESTRAINTS AT THIS STAGE.

COLOMBIA.

8. THE COMMISSION (ABBATE) SAID THAT THE COLOMBIANS WERE HESITATING. IT WAS IN THE COMMUNITY'S INTEREST TO PEACH AN AGREEMENT, AND AN EXTRA 250 TONS WOULD, IN HIS VIEW, TIP THE SCALES. COULD NOT MEMBER STATES EACH TAKE ANOTHER 27 TONS? FOR THE SAKE OF REACHING AGREEMENT, THE DANES, THE BELGIANS AND THE GERMANS FINALLY AGREED TO DO SO, THE LATTER OFFEPING (WITH REFERENCE TO THE DISCUSSIONS AT LUXEMBOURG) TO TAKE OUR SHARE. THE FRENCH HESITATED AND THE ITALIANS REFUSED, BUT A FURTHER ATTEMPT WILL BE MADE TODAY TO REACH AGREEMENT. NEGOTIATIONS RESUME ON THURSDAY.

PERU.

9. FORMAL NEGOTIATIONS BEGIN NEXT WEEK. THE COMMISSION SAID THAT

IT WAS ALREADY OBVIOUS THAT THERE WOULD BE PROBLEMS WITH PERU'S

COTTON YARN AND COTTON CLOTH EXPORT PATTERN, WHICH WAS CONCENTRATED

CHIEFLY ON ITALY AND HAD MORE THAN DOUBLED BETWEEN 1976 AND 1977.

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/BRAZIL.