RESTRICTED
5. THE UK EXPRESSED ITS DISSATISFACTION WITH THE PROPOSALS CONCERNING FLAX PRODUCTS IN AGREEMENTS WITH HUNGARY, POLAND AND ROMANIA. THESE PRODUCTS NEEDED FULL QUOTA COVERAGE AND GROWTH RATES WHICH REFLECTED THEIR SENSITIVITY. IN RESPONSE, THE COMMISSION DENIED THAT THERE WAS NO ADEQUATE QUOTA COVERAGE FOR THESE PRODUCTS BUT OFFERED TO REGARD 31 AS A MAXIMUM GROWTH RATE FOR QUOTAS AND TO CONSIDER FURTHER THE EXTENT OF COVERAGE IN INFORMAL DISCUSSIONS
WITH THE UK. THE UK SAID THAT IF THE PROPOSALS WERE NOT SATISFACTORY
THEY COULD NOT AGREE TO THE INCLUSION OF FLAX PRODUCTS IN THE NEW
AGREEMENTS AND PLACED RESERVES ON THE COMMISSION'S PROPOSALS. FRANCE, GERMANY AND THE BENELUX STRESSED THE ADVANTAGE OF INCLUDING FLAX
PRODUCTS IN THE AGREEMENTS.
6. PAKISTAN.
WI DE DIFFERENCES HAVE EMERGED OVER STARTING POINT FIGURES. IN SOME CASES THE PAKISTANI FIGURES BASED ON EXPORT LICENCES ISSUED ARE MORE THAN 100% ABOVE THE COMMUNITY'S FIGURES BASED ON REAL IMPORTS, THERE IS A PARTICULAR PROBLEM WITH COTTON FABRICS. THE COMMUNITY'S LATEST FIGURE DOES NOT INCLUDE TEMPORARY IMPORTS AND THE PAKISTANIS
WANT THE FIGURE TO BE INCREASED ACCORDINGLY. THEY CLAIM THAT DESPITE PROVISION FOR IT IN THE EEC/PAKISTAN AGREEMENT, THEY HAVE NEVER BEEN TOLD THE COMMUNITY FIGURES FOR TEMPORARY IMPORTS. THE UK SAID
THAT ONE EXPLANATION FOR THE DIFFERENCE IN FIGURES COULD BE THAT THE PAKISTANIS HAVE ADMITTED INFORMALLY THAT THEY SOMETIMES ISSUE
TWO OR THREE EXPORT LICENCES FOR THE SAME GOODS.
7. PERU.
THE MAIN PROBLEMS LEFT WITH PERU CONCERN COTTON YARN AND COTTON FABRIC. THE PERUVIANS ARE OBJECTING TO THE USE OF 1976 AS A BASIC STARTING FIGURE SINCE THEIR EXPORTS IN 1977 ARE FOUR TIMES THIS LEVEL. THEY WOULD AGREE TO A QUOTA FOR COTTON YARN BASED ON THE
1977 FIGURES WITH EXEMPTION FOR THE HIGHEST QUALITY YARNS. THE 1976 IMPORT FIGURE FOR COTTON YARN IS 525 TONNES. THEY CLAIM TO HAVE CONTRACTS WORTH 4,770 TONNES FOR 1973. THEIR FORECAST FOR 1977 IS 2,200 TONNES AND THE COMMISSION THEREFORE PROPOSE TO OFFER THEM 2,000 TONNES FOR 1978. THIS IS A DIFFERENCE OF 1,461 TONNES ON THE FIGURE THAT MEMBER STATES HAD AGREED TO OFFER PERU
3 RESTRICTED
FOR 1978 WITH
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