TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 91

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TO IMMEDIATE UKREP BRUSSELS TEL NO 2014 OF 2 NOVEMBER

INFO PRIORITY BRASILIA

INFO SAVING TO BTC HONG KONG

COREPER 4 NOVEMBER: TEXTILES: BILATERAL NEGOTIATIONS OBJECTIVES 1. (A) TO ENSURE THAT NO COMMITMENTS ARE MADE TO THIRD COUNTRIES WHICH WOULD MAKE IT LIKELY THAT THE INTERNAL GLOBAL CEILINGS

FOR GROUP 1 PRODUCTS WOULD BE EXCEEDED.

(B) TO ENSURE IT IS FULLY UNDERSTOOD THAT THE UK REMAINS UNCOMM- ITTED BY ANY MEMORANDA OF UNDERSTANDING INITIALLED BY THE COMM- ISSION UNTIL AN OVERALL VIEW IS TAKEN BY THE COUNCIL OF MINISTERS.

LINE TO TAKE

2. THE CORE OF THE COMMUNITY'S MANDATE, AND INDEED OF THE NEGOTIATING DIRECTIVES FOR THE COMMISSION'S USE IN THE CURR- ENT BILATERAL NEGOTIATIONS, REMAINS THE AGREED INTERNAL GLOBAL CEILINGS FOR THE 8 PRODUCTS IN GROUP 1. IT IS MOST IMPORTANT THAT NO OFFERS BE MADE TO THIRD COUNTRIES WHICH WOULD MAKE IT LIKELY THAT THESE CEILINGS WOULD BE EXCEEDED BY THE END OF THE ROUND OF NEGOTIATIONS. THERE IS NO POSSIBILITY OF THE UK AGREEING

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TO ANY INCREASES IN THE GLOBAL CEILINGS AT THIS STAGE AND IN ANY CASE A FRESH MANDATE WOULD HAVE TO BE SOUGHT FROM THE COUNCIL,

3. THE UK NOTES THAT THE COMMISSION HAVE NOW INITIALLED MEMORANDA OF UNDERSTANDING WITH A NUMBER OF SUPPLYING COUNTRIES. OF COURSE THESE MEMORANDA WILL NOT REDUCE THE COMMUNITY'S ABILITY TO ACT IN ACCORDANCE WITH THE MANDATE AT THE END OF THE YEAR. IT MUST ALSO BE FULLY UNDERSTOOD THAT THESE MEMORANDA OF UNDERSTANDING DO NOT COMMIT MEMBER STATES EITHER TO THE INITIALLED PACKAGE AS A WHOLE OR TO ANY OF ITS ELEMENTS. WE ARE SURE THE COMMISSION WILL TAKE FULL ACCOUNT OF MEMBER STATES VIEWS IN THE ARTICLE 113 COMM- ITTEE. MEMBER STATES WILL TAKE AN OVERALL VIEW WHEN THE SUBJECT COMES UP FOR DECISION BY THE COUNCIL. WE ALSO EXPECT A PROGRESS

REPORT TO THE NOVEMBER COUNCIL.

4. THE UK HAS ALWAYS BEEN CONCERNED THAT THE OFFERS BEING MADE TO A NUMBER OF THIRD COUNTRIES, BUT PARTICULARLY TO BRAZIL, HAVE BEEN TOO GENEROUS AS COMPARED WITH THOSE BEING MADE TO THE OTHER

DOMINANT SUPPLIERS AND THE POOREST DEVELOPING COUNTRIES. THE

CONFIDENTIAL

/UK COULD