TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 107

CONFIDENTIAL

HKK 121/6/6/1.

14 DEC

PA

GR 1200 IMMEDIATE

DESK BY FCO 129900Z

DESKBY UKMIS GENEVA 1208062

CYPHER/CAT A

FM UKREP BRUSSELS 101100Z

CONFIDENTIAL

FRAME EXTERNAL

DESK BY FCO 190908Z: DESKBY UKMIS GENEVA 120800Z

TO IMMEDIATE F C O TELEGRAM NUMBER 7665 OF 10 DECEMBER

INFO IMMEDIATE UKMIS GENEVA.

TEXTILES

MY TELNO 7663:

1. AFTER THE 9 DECEMBER COREPER DISCUSSIONS GRAY (DOT) ACCOMPANIED BY COUNSELLOR (EXTERNAL TRADE) SAW COMMISSIONER DAVIGNON PRIVATELY

AND SECURED IMPORTANT ASSURANCES ON POINTS OF MAJOR CONCERN TO THE

U.K.

(A) INCREASES IN GLOBAL CEILINGS

2. GRAY SAID THAT BEFORE WE COULD CONSIDER THE PROPOSED INCREASES FOR INDIA, EGYPT, PAKISTAN AND BRAZIL, WE NEEDED TO BE CERTAIN

THAT THEY WOULD BE SUFFICIENT TO SECURE THEIR AGREEMENT. MOREOVER

THREE IMPORTANT DIFFICULTIES REMAINED. FIRST THE COMMISSION'S PROPOSAL ON COTTON YARN STILL REPRESENTED A SLIGHT INCREASE ON

1976 IMPORT LEVELS FOR THE U.K. HE REMINDED DAVIGNON OF OUR

EXTREME SENSITIVITY ON THIS POINT. SECONDLY IT WAS ALSO VERY

DIFFICULT TO CONTEMPLATE AN INCREASE IN COTTON CLOTH IMPORTS,

AND THE PROPOSAL TO INCLUDE TEMPORARY IMPORTS IN THE QUOTAS

MIGHT CREATE PROBLEMS FOR THE U.K. PROCESSING INDUSTRY. THE

PROPOSED INCREASES FOR BRAZIL WERE UNACCEPTABLE TO US SINCE

BRAZIL HAD ALREADY BEEN TREATED TOO GENEROUSLY IN COMPARISON WITH

HONG KONG. WE MIGHT, HOWEVER, BE PREPARED TO CONSIDER OFFERING

MORE TO INDIA AND PAKISTAN WHOM WE WISHED TO HELP AS MUCH AS

POSSIBLE CONSISTENT WITH OUR OVERALL OBJECTIVES. THIRDLY HE.

NOTED THE SUBSTANTIAL INCREASES IN OFFERS OF SHIRTS AND BLOUSES TO

INDIA AND ASKED FOR CONFIRMATION THAT THESE DID NOT ENTAIL ANY

CONFIDENTAL

EXCESS