TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 204

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THE NEW AGREEMENTS WERE IN FORCE. THIS IS AN ESSENTIAL ELEMENT IN

DELING WITH THE PROBLEM OF CUMULATIVE DISRUPTION. THE COMMISSION

WERE RELUCTANT TO ACCEPT A TOTAL COMMITMENT. THEY ARGUED THAT A

LARGE NUMBER OF REQUESTS FOR ADDITIONAL RESTRAINTS IMMEDIATELY

AFTER THE COMING INTO FORCE OF TOUGHLY NEGOTIATED NEW AGREEMENTS

COULD SERIOUSLY PREJUDICE THEIR SURVIVAL. THEY TRIED TO IMPOSE

A TIME LIMIT BEFORE WHICH NEW REQUESTS FOR NEW RESTRAINTS ON

GROUP 2 PRODUCTS WOULD NOT BE PUT FORWARD. WE MADE CLEAR THAT

WE WOULD HAVE AN ABSOLUTE RIGHT UNDER THE TERMS OF S/1509 TO INSIST

ON SUCH A REGIONAL RESTRAINT IF NECESSARY AND IF THE OBJECTIVE

CRITERIA WERE MET. WE SAID WE WOULD DO OUR BEST TO AVOID EARLY

REQUESTS, THAT THE MEETING OF OUR PRESENT REQUESTS FOR REGIONAL RESTRAINTS (SEE PARA 4 ABOVE) WOULD HELP US IN THIS SITUATION BUT

THAT IN A SERIOUS SITUATION OF CUMULATIVE DISRUPTION WE WOULD HAVE

NO CHOICE BUT TO INSIST ON OUR RIGHTS. WE WARNED THAT MR DELL

MIGHT WISH TO REITERATE THE UK POSITION ON THIS AT THE COUNCIL ON

18 OCTOBER.

CUMULATIVE DISRUPTION.

6. WE AND THE COMMISSION ACCEPTED THAT THE COMMUNITY IS AT THE

MOMENT DISCUSSING THE NEGOTIATING DIRECTIVES FOR BILATERAL

AGREEMENTS WITH A DEFINED LIST OF 30 COUNTRIES. WE SAID THAT

CUMULATIVE DISRUPTION FROM COUNTRIES OTHER THAN THOSE ON THE LIST

OF 30 WAS STILL A MAJOR UK CONCERN. IN THIS CONTEXT WE DREW THE

COMMISSION'S ATTENTION TO THE FIRM COMMITMENT IN THE JUNE MANDATE

TO ACT IMMEDIATELY WHEN ''IMPORTS FROM ANY NEW SUPPLIER CAUSE OR

THREATEN TO AGGRAVATE A SITUATION OF MARKET DISRUPTION WITHIN THE

COMMUNITY' AND THAT ANY RESTRAINT WHICH MAY BE CALLED FOR

SHOULD BECOME EFFECTIVE WITHIN 3 MONTHS. THE COMMISSION'S

CONCLUSION WAS THAT THE TEXT WAS CLEAR, THE COMMUNITY WAS NEGOTIATING FOR THE MOMENT WITH 30 COUNTRIES ONLY, AND NO FURTHER

COMMENT WAS NEEDED AT THE MOMENT. ONCE AGAIN WE WARNED THAT

MR DELL MIGHT WISH TO REFER TO THIS POINT AT THE COUNCIL.

COTTON YARN.

7. WE LAFD GREAT STRESS ON THE NEED TO. PROVIDE A SOLUTION WHICH

ENABLED THE UK TO HAVE ZERO GROWTH FOR COTTON YARN IMPORTS. THE

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3.

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/COMMISSION SAID