TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 16

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FOR 1978 WITH A 1.3% GROWTH RATE. ON COTTON FABRIC, THE COMMISSION PROPOSE TO OFFER 700 TONNES ABOVE WHAT WAS AGREED FOR 1978. THE UK, ITALY AND THE NETHERLANDS SAID THAT THIS WOULD BE GOING BEYOND THE MANDATE. THE COMMISSION WOULD BE WELL ADVISED NOT TO TAKE ITS RESPONSIBILITIES: RATHER, A FURTHER MANDATE SHOULD BE SOUGHT IN THE COUNCIL. THE COMMISSION ANSWERED THAT IF THE COUNCIL HAD TO TAKE A DECISION ABOUT WHETHER THE MANDATE HAD BEEN EXCEEDED THIS WOULD BLOCK NEGOTIATIONS. THE MANDATE HAD NOT BEEN EXCEEDED SINCE NO AGREEMENT HAD YET BEEN REACHED WITH BRAZIL AND THEREFORE BRAZIL'S SHARE OF THE GLOBAL CEILING WAS STILL UNACCOUNTED FOR AND COULD BE USED.

(C) ARTICLE 113 COMMITTEE, 9-10 NOVEMBER.

EEC/US RELATIONS.

8. TRAN REPORTED ON HIGH LEVEL TALKS WHICH HAD TAKEN PLACE IN BRUSSELS BETWEEN REPRESENTATIVES FROM THE COMMISSION AND FROM THE US. THE COMMISSION HAD WARNED THE US TO STOP INTERVENING DIRECTLY OR INDIRECTLY IN THE PROCESS OF NEGOTIATIONS. MEDDLING BY THE U.S. AUTHORITIES MIGHT DETER THIRD COUNTRIES FROM REACHING AGREEMENT WITH THE COMMUNITY THIS WOULD HAVE UNFORTUNATE CONSEQUENCES. IF THE COMMUNITY HAD TO TAKE AUTONOMOUS MEASURES AT THE END OF THE DAY, THE US WOULD HAVE TO PRODUCE AD HOC LEGISLATION TO COVER THE FAILURE OF THE MFA - A COURSE OF ACTION OBVIOUSLY UNPALATABLE TO THE AMERICANS.

9. GENEVA TEXTILES COMMITTEE.

TRAN SAID THAT THE ANTI-EEC FRONT WHICH WAS BEING FORMED IN GENEVA WAS MAKING SOME HEADWAY. LED BY THE YUGOSLAVS, THEY WERE PRESSING THE CHAIRMAN OF THE TEXTILES COMMITTEE TO CONVENE A MEETING IN THE SECOND HALF OF NOVEMBER PRIMARILY TO DISCUSS THE EEC'S NEGOTIATIONS. ALL MEMBER STATES WERE IN COMPLETE AGREEMENT WITH THE COMMISSION'S LINE THAT WE SHOULD NOT FALL FOR THIS TACTIC AND SHOULD ARGUE INSTEAD THAT THE COMMUNITY WAS UNABLE TO GO TO GENEVA AT PRESENT BUT WOULD BE WILLING TO GO IN DECEMBER AFTER THE BILATERAL NEGOTIATIONS HAD FINISHED. INSTRUCTIONS HAS BEEN SENT TO THE COMMISSION REPRESENTATIVE TO RESIST A MEETING OF THE COMMITTEE.

MODEL AGREEMENT.

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