TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 60

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STALL ON HUNGARY AND POLAND UNTIL THEY HAD SEEN THE OUTCOME OF THE

ROMANIAN NEGOTIATIONS.

C. ARTICLE 113 COMMITTEE

FLAFOND-BUTOIRS

9. THE COMMISSION POINTED OUT THAT THERE WAS AN APPARENT CONTRADICT- ION IN THE PROVISIONS AGREED IN THE MANDATE IN THE CALUCULATIONS OF PLAFOND-BUTOIRS, (S/1509 PAGE 5 AND PAGE 8 (11)). THERE WAS GENERAL AGREEMENT THAT THE FORMULA ON PAGE 5 FULLY REFLECTED MEMBER STATES* INTENTIONS AND THAT PAGE 8 (11) SHOULD THEREFORE BE IGNORED.

LINEN

10. THE UK, WITH SUPPORT FROM IRELAND, PROPOSED THAT TREATMENT FOR LINEN SHOULD BE ANALOGOUS TO THAT FOR GROUP | PRODUCTS WITH GROWTH RATES NOT EXCEEDING 4% IN ANY CASE AND A BASKET EXTRACTOR LEVEL OF 1% OF THIRD COUNTRY IMPORTS. THE PROPOSAL WAS UNANIMOUSLY ACCEPTED BY MEMBER STATES AND BY THE COMMISSION WITH THE PROVISO THAT WE SHOULD NOT TRY TO UNDO THE AGREEMENT WHICH HAS ALREADY DEEN

REACHED WITH POLAND.

FINAL STATE OF PLAY

11. LATE LAST NIGHT, TRAN REPORTED ON THE FINAL STATE OF PLAY OF THE NEGOTIATIONS. TWO AGREEMENTS HAD JUST BEEN SIGNED, WITH PERU AND INDONESIA. THE COMMISSION HAD IDENTIFIED ZONES OF AGREEMENT'' WITH INDIA, BRAZIL AND EGYPT AND HOPED TO DO THE SAME WITH PAKISTAN, ((THE COMMISSION HOPED THAT THIS WILL NEUTRALISE COUNTRIES TRYING TO FORM A FRONT AGAINST THE COMMUNITY IN GENEVA,)) AGREEMENT WITH HOROCCO MAY BE REACHED TODAY. THE COMMISSION THINK AGREEMENT CAN BE REACHED WITH PORTUGAL AT THE EXPENSE OF THE RESERVES INTENDED FOR SPAIN. NEGOTIATIONS WITH THE LATTER, ARE PROVING DIFFICULT, AND THE COMMISSION IF NECESSARY WILL TAKE ACTION AGAINST THEM UNDER THE MFA. TRAN THOUGHT THAT THE COMMISSION WAS NOW IN A POSITION TO REPORT THAT NEGOTIATIONS HAD BEEN SUCCESSFUL AND TO RECOMMEND TO THE COUNCIL THAT THE MFA SHOULD BE RENEWED, MEMBER STATES WARNED THE COMMISSION THAT THE COUNCIL WOULD NOT BE ABLE TO TAKE A VIEW OF THE PACKAGE WHICH WOULD BE PRESENTED TO THEM UNLESS MEMBER STATES HAD THE DRAFT REGULATION GIVING THE BREAKDOWN BETWEEN MEMBER STATES

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