TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 123

RESTRICTED

THIS ARRANGEMENT WILL APPLY FOR 1978 ONLY BUT THE TURKS

ACCEPT THAT IN PRACTICE THE COMMUNITY WILL WISH IT TO CONTINUE UNTIL

1981. INSTEAD OF A SYSTEM OF DUAL EXPORT AND IMPORT CONTROL (WHICH

WOULD BE LEGALLY DOUBTFUL IN THE ABSENCE OF FORMAL USE OF THE SAFE-

GUARD CLAUSE) THERE WILL BE AN AGREED MINUTE COVERING CONTROL PROC-

EDURES IN WHICH THE TURKISH INDUSTRY WILL MAKE PROVISION FOR REGULAR

MEETINGS TO EXCHANGE STATISTICAL INFORMATION. TRAN (COMMISSION) HAS

MADE A STATEMENT TO THE PRESS THAT FOR THE MOMENT THERE IS NO CASE

FOR QUANTITATIVE RESTRICTIONS ON IMPORTS FROM TURKEY. THIS WAS APPAR-

ENTLY MADE IN ORDER TO ALLOW THE TURKISH DELEGATION TO SAVE FACE AND

DOES NOT AFFECT THE ECONOMIC CONTENT OF THE AGREEMENT REACHED.

3. TUNISIA AND MOROCCO.

THE PREVIOUS UNCOOPERATIVE ATTITUDE OF BOTH THE TUNISIAN AND MOR-

OCCAN GOVERNMENTS HAS CHANGED IN THE LAST WEEK AND THE COMMISSION

JUDGES IT LIKELY THAT IT WILL BE POSSIBLE TO REACH THE SAME TYPE OF

ARRANGEMENT AS THAT AGREED WITH TURKISH INDUSTRY. THIS ARRANGEMENT

WOULD APPLY TO GROUP 1 PRODUCTS AND TO PRODUCTS IN OTHER GROUPS

SHOULD MEMBER STATES REQUEST REGIONAL MEASURES. DISCUSSIONS WILL

CONTINUE DURING 1978 TO TRY AND RESOLVE FIGURES FOR 1979-82 AND THERE

WILL BE CONTINUOUS CONSULTATIONS WITH BOTH COUNTRIES ABOUT GENERAL

QUESTIONS AS WELL AS ABOUT CONTROL PROCEDURES.

4. EGYPT. THE EGYPTIAN DELEGATION DID NOT ATTEND

A MEETING ARRANGED WITH THE COMMISSION ON 21 NOVEMBER. THE COMMISS-

ION HAVE SENT A TELEX TO CAIRO SUGGESTING A MEETING ON 28 NOVEMBER

AND WARNING THAT THE ONLY ALTERNATIVE IS AUTONOMOUS MEASURES FOR

COTTON CLOTH AND YARN.

5. STATE TRADERS. THERE WAS A LONG AND INCONCLUSIVE DISCUSSION OF

THE COMMISSION'S PROPOSALS FOR THE AUTONOMOUS REGIME TO BE APPLIED

TO STATE TRADING COUNTRIES IN 1979. THERE IS GENERAL AGREEMENT THAT

FOR GROUP 1 PRODUCTS THE STATE TRADERS SHOULD RECEIVE THE SAME TREAT-

MENT AS OTHER LOW-COST SUPPLIERS 1.E. QUOTAS BASED ON 1976 TRADE

WITHIN THE OVERALL CEILINGS FOR EACH PRODUCT. FOR OTHER PRODUCTS

THE GERMANS CONTINUED TO INSIST THAT MEMBER STATES' EXISTING AUTON-

OMOUS QUOTAS SHOULD BE MAINTAINED INTACT. WE SAID THAT WE COULD NOT

ACCEPT THAT THE MARCH MANDATE (S/399) COVERED NON-MFA STATE TRADERS:

IN ANY CASE IT SEEMED UNLIKELY THAT THE NECESSARY CALCULAT-

IONS COULD BE MADE IN TIME FOR THE COMMISSION'S PROPOSALS TO BE

ADOPTED. THE OTHER MEMBER STATES SUPPORTED THE COMMISSION PROPOSALS.

DISCUSSION CONTINUES TODAY.

2

RESTRICMED

16. MALAYSIA,