TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 133

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TO IMMEDIATE F C O TELEGRAM NUMBER 7227 OF 25 NOVEMBER

INFO ROUTINE BONN PARIS UKMIS GENEVA BRASILIA DELHI ISLAMABAD

COLOMBO SEOUL MEXICO CITY BELGRADE LIMA

INFO SAVING CAIRO ATHENS RABAT TUNIS ANKARA,

MULTIFIBRE ARRANGEMENT: BILATERAL NEGOTIATIONS

PROGRESS REPORT NO 10 (22-24 NOVEMBER)

SUMMARY

R{"

1. WITH ONLY SIX DAYS TO GO TO THE COMMISSION'S DEADLINE FOR THE END OF NEGOTIATION, TRAN VAN THINH (COMMISSION) YESTERDAY

GAVE THE 113 COMMITTEE A FRANK REPORT ON THE CURRENT STATE OF

PLAY. HE DESCRIBED THE COTTON YARN AND COTTON CLOTH CEILINGS

LAID IN THE MANDATE AS THE MAIN STUBLING BLOCKS TO AGREEMENT WITH

SEVERAL SUPPLIERS INCLUDING BRAZIL, INDIA, PAKISTAN. AND EGYPT.

POLITICAL DECISIONS WOULD THEREFORE HAVE TO BE MADE AT THE

DECEMBER COUNCIL EITHER TO AUTHORISE THE INCREASES IN THE

CEILINGS WHICH WERE NECESSARY TO SECURE AGREEMENT WITH THESE

SUPPLIERS OR TO TAKE AUTONOMOUS MEASURES.

PREFERENTIAL COUNTRIES

2. TRAN PREDICTED THAT AN ARRANGEMENT COULD PROBABLY BE REACHED

ON THE FIGURES, IN THE NEXT FEW DAYS WITH MOROCCO AND TUNISIA. TURKEY WAS VIRTUALLY SETTLED BUT IT WAS UNLIKELY THAT ANY SORT

OF ARRANGEMENT COULD BE AGREED WITH GREECE.

BRAZIL

3. A PSYCHOLOGICAL WAR WAS BEING WAGED BY BRAZIL. ON ONE FRONT, DISCUSSIONS WERE PROGRESSING WITH THE BRAZILIAN AMBASSADOR IN AN ATTEMPT TO IDENTIFY AREAS OF AGREEMENT WITHOUT REACHING A FORMAL

RESTRICULED.

/AGREEMENT OM ASS