TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 42

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TO PRIORITY FCO TELNO 414 OF 16 DECEMBER 1977

INFO PRIORITY UKREP BRUSSELS

OUR TELNO 406: MULTI FIBRE ARRANGEMENTS

1. STOLP TELEPHONED THIS MORNING TO PASS ON RESULTS OF THE INTER-

DEPARTMENTAL DISCUSSION ON 15 DECEMBER.

2. AS THE COMMISSION'S BRIEF ABOUT THE BILATERAL PACKAGE OFFERS

ONLY FEW FIGURES AND AN OUTLINE OF SOME OF THE BILATERAL

AGREEMENTS, THE DUTCH ARE SATISFIED THAT THE NEGOTIATIONS HAVE NOT PROGRESSED AS FAR AS THE COMMISSION SUGGEST.

NEVERTHELESS, THE FEELING OF THE MEETING WAS THAT THE NETHERLANDS SHOULD ACCEPT THE COMMISSION'S PACKAGE IF ONLY BECAUSE THEY

COULS SEEE NO ALTERNATIVE, BUT SHOULD ALSO:

(A) QUESTION THE COMMISION CLOSELY ABOUT THE MEASURES THEY INTEND TO TAKE WHEN THE AGREEMENTS EXPIRE AFTER ONLY A YEAR.

(D) ASK THE COMMISSION ABOUT THE ALLOCATION OF QUOTAS OF

PRINTED COTTON CLOTH FROM GROUP ONE COUNTRIES.

(C) SEEK AN EXPLICIT DECLARATION FROM THE COMMISSION THAT IT WILL TAKE A MUCH FIRMER LINE WITH COUNTRIES WHO HAVE SO FAR

REFUSED TO ENTER INTO BILATERAL AGREEMENTS WITH THE COMMUNITY,

3. STOLP SAID THAT THE COMMITTEE DID NOT HAVE TIME TO LOOK AT

THE ARRANGEMENTS WITH THE COUNTRIES IN GROUP TWO AND WOULD

MEET AGAIN ON 19 DECEMBER TO DO SO.

SYKES

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