TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 213

CONFIDENTIAL

THESE ARE SHOWN ON THE ATTACHED LIST (IN MIFT MOT TO ALL)

WHICH HAS ALREADY BEEN PASSED TO THE COMMISSION SERVICED BY THE W

PERMANENT REPRESENTATION).

TO ENSURE THAT PROGRESS IS RAPID, I AM PREPARED TO SEND A TEAM

OF HIGH LEVEL OFFICIALS TO BRUSSELS TO START WORK TOMORROW AFTERNOON

ON THE UNDERSTANDING THAT FIGURES OF THE CORT WE SHALL NEED TO HAVE

A MEANINGFUL DISCUSSION WILL THEN BE AVAILABLE.

YOU WILL KNOW THAT WE ATTACH IMPORTANCE TO HAVING A SATISFACTORY

TRIGGER MECHANISM FOR THE EXTRACTION OF PRODUCTS IN GROUPS 3, 4 AND

5. I NOTE THAT THIS ISSUE HAS BEEN SET ASIDE FOR FURTHER DISCUSSION

IN THE ARTICLE 113 COMMITTEE AND ANY ACCEPTANCE OF THE DIRECTIVE

ON OUR PART WOULD ALSO BE WITHOUT PREJUDICE TO THE OUTCOME OF THIS

DISCUSSION.

OICE WE HAVE HAD A CHANCE TO ASSESS THE RESULTS OF THE VISIT

WE WILL CONSIDER WHETHER WE CAN LIFT OUR RESERVE. I SHALL OF COURSE

BE PRESENT AT THE FORTHCOMING MEETING OF THE FOREIGN AFFAIRS COUNCIL.

1 MUST EMPHASISE HOWEVER THAT EVEN IF IN THE LIGHT OF OUR EXAMINATION

OF THE FIGURES AND YOUR REACTION TO MY POINT BELOW ABOUT COTTON YARN, WE DID DECIDE TO LIFT OUR RESERVE, IT WOULD HAVE TO BE ON THE

FOLLOWING CONDITIONS:

(A) WE SHALL STILL NOT AGREE TO THE COMMISSION MAKING FORMAL

PROPOSALS TO THIRD COUNTRIES ON THE PRODUCTS OF INTEREST TO US IN QUESTION, UNLESS WE ARE SATISFIED WITH THE FIGURES:

(B) IF THE COMMISSION GO AHEAD IN THE FACE OF OUR OBJECTIONS, THEY

WILL RISK A UK VETO ON THE RESULTS OF THE NEGOTIATIONS,

I SHOULD LIKE TO EMPHASIZE AGAIN THAT THE COMMUNITY'S DECISION ABOUT THE FUTURE OF THE MFA ITSELF MUST'DEPEND ON THE SATISFACTORY OUTCOME OF THE NEGOTIATIONS, ON THE SUBJECT OF COTTON YARN, YOU WILL BE AWARE OF THE HIGH DEGREE OF POLITICAL SENSITIVITY WHICH LED ME TO EXPRESS MY CONCERN AT THE COUNCIL OF 25 SEPTEMBER THAT THERE COULD. DE NO GROWTH.. I WISH TO RE-EMPHASISE THAT THIS IS A MATTER OF THE GREATEST IMPORTANCE TO US,

UNQUOTE

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