TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 75

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BE VERY HELPFUL. THE COMMISSION SHOULD NOT UNDERESTIMATE THE

POLITICAL DIFFICULTIES OF THESE PRODUCTS WHICH HMG WERE IN A BETTER

POSITION TO JUDGE THAN MR DAVIGNON. IT WAS NOT ENOUGH TO SAY THAT

WE COULD MAKE OUR OWN CALUCLATIONS: WE HAD DONE SO BUT IN MANY CASES

IT WAS IMPOSSIBLE TO RECONCILE THEM WITH THE INFORMATION WE

WERE GETTING FROM THE COMMISSION.

16. CONCLUDING, DAVIGNON SAID THAT THE TECHNICAL SITUATION WOULD BE

ONE OF TOTAL UNCERTAINTY IF THE COUNCIL FAILED TO ACCEPT THE COMMISS-

ION'S PROPOSAL TOMORROW. THE PACKAGE AS NEGOTIATED MADE THE TEXTILE

INDUSTRY AND MEMBER STATES INVULNERABLE TO LEGAL ACTION BY IMPORT-

ERS WHO COULD OTHERWISE HAVE PROVED THAT THE COMMUNITY WAS IN FACT

RESTRICTING IMPORTS WITHOUT PROVING MARKET DISRUPTION. A FAILURE BY

THE COUNCIL TO APPROVE THE PACKAGE COULD NEVERTHELESS NOT BE PROOF

THAT THE NEGTOATIONS HAD FAILED AND IN THE CIRCUMSTANCES THE COM-

MISSION SAW NO WAY OF APPLYING GATT ARTICLE XIX. FAILURE TO APPROVE

WOULD CALL INTO QUESTION EVERYTHING THAT HAD BEEN ACHIEVED, MR JENK- INS (PRESIDENT OF THE COMMISSION) EMPHASISED THE CRUCIAL IMPORTANCE

OF REACHING A DECISION TOMORROW. FAILURE TO AGREE WOULD PUT AT RISK ALL THAT THE COMMISSION HAD ACHIEVED. IT WOULD BE EXTREMELY DAMAGING

FOR THE COMMUNITY'S RELATIONS WITH THE TEXTILE EXPORTING COUNTRIES

AND IN THE MTN NEGOTIATIONS. THE CREDIBILITY OF THE COMMUNITY AS A NEGOTIATOR WOULD BE UNDERMINED AND HE COULD NOT SEE HOW THE INTERESTS CF ANY MEMBER STATE COULD BE FORWARDED, SIMONNET (BELGIAN PRESIDENCY)

ADDED THAT IT WAS POINTLESS TO CONTEMPLATE ANY POSSIBILITY OF DEF- ERRING A DECISION AFTER TOMORROW. THE PRESIDENCY WOULD IF NECESS-

ARY BRING MATTERS TO A CONCLUSION USING THE RULES OF PROCEDURE. HE HOPED THAT TOMMORROW THERE WOULD NOT BE A REPEAT OF THIS AFTERNOON'S

DEBATE: HE EXPECTED THAT DAVIGNON WOULD GIVE A BRIEF REPORT TO THE

COUNCIL AND THAT THEN MINISTERS WOULD TAKE THE NECESSARY DECISION. FCO PLEASE ADVANCE TO ALL ADVANCE COPY ADDRESSEES (DESK BY 2009307) FCO PS/DR OWEN, STERN EID(E)

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