TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 109

CONFIDENTIAL

(B) GATT TEXTILES COMMITTEE

5. GRAY SOUGHT CONFIRMATION THAT THE COMMISSION WOULD NOT TRY TO

COMMIT THE COMMUNITY IN ANY WAY TO A PROTOCOL OF RENEWAL BEFORE

THE COUNCIL HAD TAKEN A DECISION. IT WAS ALSO ESSENTIAL THAT ANY

COMMITMENT WHICH THE COMMUNITY DID DECIDE TO ENTER INTO WOULD NOT

BE SUCH AS TO UNDO THE RESULTS OF THE BILATERALS. IN PARTICULAR

THE COMMUNITY MUST RETAIN COMPLETE FREEDOM TO ACT IMMEDIATELY

BOTH IF TRIGGER LEVELS WERE PASSED FOR UNRESTRAINED PRODUCTS FROM

SUPPLIERS WITH WHOM THERE WERE AGREEMENTS AND TO INTRODUCE

RESTRAINTS AT SIMILAR LEVELS FOR NEW SUPPLIERS WITH WHOM THERE

WAS NO AGREEMENT. DAVIGNON SAID THAT THE COMMISSION ACCEPTED THIS COMPLETELY AND REPEATED HIS ASSURANCE THAT THEY WOULD NOT CONSIDER

ANY PROTOCOL WHICH UNDERMINED THE RESULTS OF THE BILATERALS. THE

COMMISSION WOULD NOT ADVISE SIGNING A RENEWED M F A UNTIL ALL THE

SUPPLIERS WHO HAD INITIALLED MEMORANDA OF UNDERSTANDING HAD ALSO

SIGNED THE FULL TEXT OF THE AGREEMENT. THIS MEANT THAT IT WAS

UNLIKELY THAT THE EEC WOULD BE IN A POSITION TO SIGN THE

PROTOCOL UNTIL WELL INTO JANUARY. ON THE PROTOCOL ITSELF HE

THOUGHT THAT THERE WAS NO DANDER IN THE NEW REFERENCES TO THE

TS B SINCE IT HAD NO POWER TO ENFORCE ITS RECOMMENDATIONS.

FOR THE FUTURE HE CONFIRMED THAT THE COMMISSION FULLY RECOGNISED

THE IMPORTANCE OF ACTING SWIFTLY TO DEAL WITH UNRESTRAINED SUPPLIERS INCLUDING THOSE WITH WHOM THERE WERE NO BILATERALS,

AND ADDED THAT THE COMMISSION WERE DETERMINED TO DEVOTE ADEQUATE

RESOURCES TO THE DETAILED IMPLEMENTATION OF THE AGREEMENTS WHICH

HAD NOW BEEN REACHED. BUT FOR THIS TO BE POSSIBLE, MEMBER STATES

MUST PROVIDE THE BUDGETARY MEANS..

(C) OTHER POINTS

6. IN FURTHER DISCUSSION GRAY RECALLED THE ASSURANCES WHICH THE

COMMISSION HAD GIVEN US DURING THE WEEKEND OF 14-15 OCTOBER · (MY TELNO 6119 REFERS) ON PRODUCTS IN ALL GROUPS AND ASKED WHETHER

THERE HAD BEEN ANY DEPARTURES FROM THESE BESIDES THOSE FOR COTTON

YARN AND CLOTH. DAVIGNON SAID THAT THE COMMISSION NEGOTIATORS HAD

KEPT TO THEM IN ALL ESSENTIAL RESPECTS.

7. GRAY MADE IT CLEAR THAT WE ATTACHED GREAT IMPORTANCE TO

MAINTAINING OUR QUOTA ON SPANISH COTTON YARN AT THE END OF THE

YEAR. DAVIGNON CONFIRMED THAT AGREEMENT WAS NO MOST UNLIKELY AND GAVE A CLEAR HINT THAT THE COMMISSION WOULD PROPOSE AUTONOMOUS

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TIA

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