TNAG-0633-FCO40-781-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 86

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CASE HAVE SERIOUS DIFFICULTIES IN RELATION TO THEIR DOMESTIC

APPROVAL PROCEDURES AND COULD IN NO CIRCUMSTANCES ACCOMMODATE

ANY SUBSEQUENT PROPOSALS THAT MIGHT BE MADE FOR QUOTE ADDITIONAL

FACILITIES UNQUOTE.

3. THE NORDICS (CRAFOORD) HAD ALWAYS FELT THAT THEIR INTERESTS

WOULD BE BEST SERVED BY MULTILATERAL CO-OPERATION BASED ON

INTERNATIONALLY AGREED RULES. THEY WERE THEREFORE ABLE TO

WELCOME THE OPENING OF THE PROTOCOL. BUT THEY WOULD NOT BE ABLE

TO TAKE ANY DEFINITIVE POSITION UNTIL THEY HAD COMPLETED THE

BILATERAL NEGOTIATIONS ALREADY UNDER WAY OR ABOUT TO BE INITIATED-

WHICH WOULD BE ON THE BASIS OF THE MFA QUOTE AS RENEWED UNQUOTE. CANADA (MARTIN) SUPPOSED THAT IT WAS SAFE TO ASSUME THAT CANADIAN

CONCERNS WERE IMPLICITLY COVERED IN THE PROTOCOL. BUT THEY HAD ONLY

JUST BEEN ABLE TO TRANSMIT IT TO OTTAWA AND COULD DO NO MORE

THAN UNDERTQKE TO REPORT CANADIAN REACTIONS AS SOON AS

POSSIBLE. SWITZERLAND (EBERHARD) CONTINUED TO PUT THEIR TRUST IN

GENERAL GOOD FAITH, ACCEPTANCE OF OBLIGATIONS AND RECOGNITION

OF INSTITUTIONS. IT WAS STILL THEIR POSITION THAT ALL THE PRIVILEGES

OF THE MFA IN ITS ORIGINAL FORM OR AS RENEWED WOULD BE

AVAILABLE TO ALL MEMBERS. ON THIS BASIS THEY WERE HAPPY TO JOIN

IN THE CONSENSUS AND WOULD BE READY TO SIGN THE PROTOCOL AT AN

APPROPT LATE TIME. AUSTRIA ALSO COULD JOIN THE CONSENSUS SINCE

THEY FOUND THAT THEIR CONCERNS WERE RECOGNISED IN THE PROTOCOL

PFA EXTENSION WOULD HAVE TO BE APPROVED BY THE AUSTRIAN PARLIAMENT AD

THIS WOULD TAKE SOME TIME. PARLIAMENTARY APPROVAL WOULD BE FACILITATO

IF IN THE MEANTIME BILATERAL AGREEMENTS COULD BE CONCLUDED WITH

EXPORTERS ON A MUTUALLY ACCEPTABLE BASIS. MEANWHILE AUSTRIA WOULD

BE ABLE TO OPERATE ON A DE FACTO BASIS. AUSTRALIA STAYED SILENT.

4. EXPORTER REACTIONS WERE VERY MUCH ON THE LINES EXPECTED, WITH

HEAVY EMPHASIS PLACED ON THE TEMPORARY AND EXCEPTIONAL NATURE OF

THE AUOTE REASONABLE DEPARTURES UNQUOTE PROVIDED FOR IN PARAGRAPH

5 OF THE TEXTILES COMMITTEE'S CONCLUSIONS. SOME, NOTABLY KOREA AND HONG KONG (TSAO) MADE IT CLEAR THAT THEIR ACCEPTANCE OF THE

PROTOCOL WAS FOR FEAR OF SOMETHING WORSE, IN SHORT THAT THE

DEPARTURES THEY HAD BEEN ASKED TO SWALLOW WERE FAR FROM REASONABLE AD ACCOMPANIED BY THREATS OF PUNISHMENT. SEVERAL, INCLUDING NOTABLY INDIA AND BRAZIL, REPEATED THEIR REJECTIOMN OF SUCH DANGEROUS CONCEPTS AS MARKET PENETRATION. ALL WERE AGREED THAT THE

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