TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 38

GR 280

IMMEDIATE

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TO IMMEDIATE UKREP BRUSSELS TELNO 2398 OF 19 DECEMBER.

TEXTILES: MULTIFIBRE ARRANGEMENT.

FOLLOWING FOR COUNCIL DELEGATION.

1. AS YOU KNOW, THE TEXTILES INVOLVED ARE PARTIALLY LIBERALISED PRODUCTS (COTTON YARN) FALLING UNDER REGULATION 1439/74 AND PARTIALLY UNLIBERALISED PRODUCTS FALLING UNDER DECISION 72/455.

IT IS NOW CLEAR THAT IT WOULD NOT BE POSSIBLE TO SIGN ALL THE

BILATERAL AGREEMENTS AND A PROTOCOL OF RENEWAL OF THE MFA (IF THE COUNCIL DECIDED TO DO SO) BY THE END OF THE YEAR, AND

THEREFORE SOME INTERIM ACTION BY THE COMMUNITY WOULD BE CALLED

FOR.

2. AS APPEARS FROM DOCUMENT S/2115/77, THE COMMISSION ENVISAGES A COMMISSION REGULATION MADE UNDER REGULATION 1439/74 VALID FOR SIX WEEKS, AS WAS DONE IN COMMISSION REGULATION EEC NO 1860/77, ALSO RELATING TO TEXTILE MEASURES, WHICH COVERS UNLIBERALISED

PRODUCTS. IT SEEMS TO US THAT IN PRINCIPLE THIS SHOULD COVER

ONLY LIBERALISED PRODUCTS, AND THAT A COUNCIL REGULATION UNDER

ARTICLE 113 OF THE TREATY OF ROME WOULD BE MORE APPROPRIATE FOR UNLIBERALISED PRODUCTS. (THE SUBSEQUENT COUNCIL REGULATION NO 2071/77 IN FACT IS BASED ON ARTICLE 113 AND REGULATION 1439).

BUT WE ARE NOT SURE HOW FAR WE ACQUIESCED IN THE COMMISSION'S

/ACTION

CONFIDENTIAL

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