TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 205

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DISCUSSION IN THE CONTEXT OF THE 'RIGID' AGREEMENT FOR LARGER

SUPPLIERS. WE THEREFORE FULLY RESERVED OUR POSITION ON THE TEXT OF THE FLEXIBLE AGREEMENT UNTIL THESE POINTS WERE SETTLED.

•

4. WE WERE SUPPORTED BY FRANCE AND ITALY BUT THE COMMISSION INSISTED

ON THEIR RIGHT TO INITIAL AGREEMENTS ON THEIR OWN RESPONSIBILITY.

THE COMMISSION'S TASK WAS TO CONDUCT THE NEGOTIATIONS WITH THE

ADVICE OF THE ARTICLE 113 COMMITTEE. MEMBER STATES WERE BEING GIVEN

THE OPPORTUNITY TO CONSIDER THE FLEXIBLE AGREEMENT. IF THEY COULD

NOT AGREE THE COMMISSION WOULD HAVE TO ASSUME ITS RESPONSIBILITIES.

THIS VIEW WAS ENDORSED BY GERMANY AND BELGIUM.

5. SUMMING UP DE SMAEL (IN THE CHAIR) NOTED THE RESERVES WHICH HAD

BEEN PLACED ON THE TEXT OF THE AGREEMENT BUT SUPPORTED THE

COMMISSION'S INTERPRETATION OF THEIR NEGOTIATING RESPONSIBILITIES.

(B) THE 'RIGID' AGREEMENT.

6. AT A SPECIAL MEETING OF THE ARTICLE 113 COMMITTEE YESTERDAY

MORNING THE COMMISSION GAVE THEIR RESPONSE TO THE COMMENTS MADE BY

MEMBER STATES ON MONDAY AFTERNOON:

:

ARTICLE 4. THE COMMISSION ARE NOW PROPOSING TO MAKE IT CLEAR

EITHER IN THE TEXT OF THE AGREEMENTS OR BY EXCHANGES OF LETTERS

THAT THE COMMUNITY WILL NOT AS A RULE ACCEPT SWING WITHIN GROUP I

OR INTO GROUPS I AND 11. THEY CONFIRMED THAT THEY WOULD BE OFFERING.

5 PER CENT FOR EACH KIND OF FLEXIBILITY (INCLUDING TRANSFERS BETWEEN GROUPS) WITH A CUMULATIVE LIMIT OF 9 PER CENT FOR GROUP I

AND 12.5 PER CENT FOR OTHER GROUPS. THEY SAID. HOWEVER THAT THEY

WERE PREPARED TO INCREASE THESE FIGURES IN NEGOTIATIONS WITH

SUPPLIERS. WE, FRANCE AND THE NETHERLANDS INSISTED THAT FIGURES

PROPOSED BY THE COMMISSION WERE MAXIMA WHICH SHOULD NOT BE

EXCEEDED.

ARTICLE 6. THE COMMISSION MAINTAINED THEIR PREVIOUS POSITION. WE

WARNED THE COMMISSION THAT WE WERE PREPARED TO RAISE THE PROPOSED

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