TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 78

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THE UK'S MAJOR AREAS OF CONCERN REMAIN:

1) THE PRICE ABOVE THE MANDATE CEILINGS WHICH THE UK WILL HAVE TO

PAY FOR COTTON YARN AND COTTON CLOTH.

2) THE LACK OF PRECISE FICURES ON THE UK CEILINGS FOR THE OTHER

GROUP I PRODUCTS.

3) THE NEED FOR A COMMUNITY COMMITMENT TO PRECISE ARRANGEMENTS FOR

DEALING WITH SUPPLIERS WITH WHICH TO CILATERAL AGREEMENTS ARE

CURRENTLY ENVISAGED.

4) THAT THERE SHOULD BE NO DEPARTURES FROM THE AGRCED TEXT OF THE

MODEL AGREEMENT ESPECIALLY THE DAGKET EXTRACTOR AND FLEXIBILITY

CLAUSES.

BACKGROUND.

5. THIS MORNING MINISTERS DISCUSSED THE LINE TO, TAKE AT THE COUNCIL

ON 20 DECEBER. THEY REACHED NO CONCLUSION AND THERE WILL BE FURTHER

MINISTERIAL CONSIDERATION TOMORROW, 10 DECEMBER.

C. THERE ADE PROBLEMS WITH THE FIGURES FOR UK COTTON CLOTH QUOTAS (PAGE 9 OF THE DAVIONOM REPORT). IT MAY BE NECESSARY TO RAISE THESE.

PLEASE CONSULT FIRST WITH GRAY, DOT.

7. COMMISSIONER DAVICHON GAVE ASSURANCES AT COREPER ON 9 DECENDER

THAT THE COM 1SSION WOULD ONLY SIGN IN GENEVA OI CERTA IN CONDITIONS. WE WISH TO BE ASSURED THAT THESE CONDITIONS WILL DE MA INTAINED.

ONEN

FRAME EXTERNAL

EID (E) PS

PS)MRJUDI

PSIPUS

MR BUTLER

ADDITIONAL DISTN

FRAME

COPIES TO

MR MICHELL, TREASURY

MR RENWICK CABINET OFFICE

MISS MACFARLANE,

DOT

MR RIDLEY

DOI

MISSLOWNE

MRBAXTER MRBUIST

CDM

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