+
CONFIDENTIAL
(11) FLEXIBILITY
THE HONG KONG DRAFT PROVIDES FOR NO SPECIFIC LIMIT ON CARRYOVER.
A LIMIT WILL BE NEEDED FOR CARRYOVER FROM 1978 TO 1979 AND THE
FOLLOWING YEARS AS PROVIDED FOR IN THE NEW US/HONG KONG AGREEMENT.
BUT WE COULD NOT AGREE TO ANY CARRYOVER FROM THE EXISTING
AGREEMENT INTO A NEW AGREEMENT, IE. FROM 1977 TO 1978. THE
EXISTING AGREEMENT MUST FINISH FOR ALL CATEGORIES ON 31 DECEMBER
1977.
NO SWING IS ALLOWED FOR GROUP 1 PRODUCTS. THE UK BELIEVES THERE
SHOULD BE NO AUTOMATIC USE OF SWING BETWEEN GROUPS 2 TO 5 OR WITHIN
AN INDIVIDUAL GROUP OUTSIDE GROUP 1, WITHOUT THE COMMUNITY'S PRIOR
AGREEMENT. WE MAY BE PREPARED TO ACCEPT AUTOMATIC SWING WITHIN
AN INDIVIDUAL GROUP IF THAT IS THE GENERAL VIEW AMONG MEMBER
STATES.
(111) COMPREHENSIVITY
THE HONG KONG DRAFT LEAVES OUT A NUMBER OF THE PRODUCTS WE NEED
INCLUDED. AS INTENDED FOR ALL THE OTHER BILATERAL AGREEMENTS ALL
PRODUCTS SHOULD BE COVERED BY RESTRAINTS OR INCLUDED IN A BASKET
WITH THE APPROPRIATE EXTRACTOR FORMULA.
(IV) ARTICLE XIX RIGHTS
THE HONG KONG DRAFT PROVIDES FOR THE WAIVER OF THE COMMUNITY'S
ARTICLE XIX RIGHTS, AND THOSE UNDER ARTICLE 3 OF THE EXISTING
MFA ONCE A NEW AGREEMENT IS IN FORCE. SOMETHING ON THIS BASIS
HAS ALREADY BEEN INCLUDED IN THE COMMUNITY'S DRAFT AGREEMENT.
WE BELEIVE THAT THE WAIVER OF ARTICLE XIX RIGHTS MUST BE MADE
FIRMLY CONDITIONAL ON THE SATISFACTORY OPERATION OF THE NEW
AGREEMENT.
WE TAKE THE ASSURANCES IN THE COMMISSION PAPER IN YOUR TELNO 6389
AS MEANING THAT THE COMMUNITY WILL BE FREE TO ACT AGAINST
THOSE SUPPLIERS WHO HAVE NOT SIGNED UP BY ANY LEGAL MEANS (INCLUDING ARTICLE XIX) NOTWITHSTANDING ANY WAIVER IN OPERATION
WITH THOSE WHO HAVE SIGNED AGREEMENTS. IF WE OBTAIN THE DRAFTING CHANGES IN OUR TELNO 1974 (PARA 5), MINISTERS MIGHT THEREFORE BE ABLE
TO AGREE THAT WE CAN ACCEPT THE COMMISSION DRAFT ON THE WAIVER OF
ARTICLE XIX ESPECIALLY BECAUSE OF THE ADDED PROTECTION GIVEN
BY THE 90 DAY DENUNCIATION PERIOD AND THE ASSURANCE THAT
FORESTALLING WOULD BE PREVENTED BY THE REDUCTION OF QUOTAS PRO RATA TEMPORIS THEREAFTER (ARTICLE. 11). .
-3- CONFIDENTIAL
/THE
No comments yet.
Private notes are available after approval.