TNAG-0762-FCO40-966-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 96

RESTRICTED

GPS 1630

CYPHER CAT A

Ry

Kenn

FM UKREP BRUSSELS 116147

R.S. qvi

3.0

RESTRICTED

FRAME EXTERNAL

RP to Mo Staggo

HKK wil!

鞋

..on

20-6-78=

B.".

INDEX

- 5.1!1978

2.31

Aston Teken

TO ROUTINE FCO TELNO 3337 OF 1 JUNE 78

INFO SAVING UKMIS GENEVA

TEXTILES: ARTICLE 113 COMMITTEE, WEDNESDAY 31 MAY 1978

1. A. SUMMARY.

THERE WAS FURTHER DISCUSSION OF THE COMMISSION'S PAPER

ON THE EXIT FROM THE BASKET MECHANISM. THE COMMISSION WILL NOW PRODUCE A SECOND REVISED VERSION OF THEIR PAPER.

?. B. DETAIL EXIT FROM THE BASKET MECHANISM.

THERE WAS FURTHER DISCUSSION OF THE REVISED VERSION OF THE COMMISSION'S PAPER SETTING OUT THE PROCEDURES FOR OPERATING THE EXIT FROM THE BASKET MECHANISM,

3. BECK (COMMISSION) EMPHASISED THAT THE COMMISSION PAPER HAD SEEN INTRODUCED FOR DISCUSSION PURPOSES, THE COMMISSION WAS QUITE WILLING TO TAKE INTO CONSIDERATION SUGGESTIONS FROM MEMBER STATES WHICH COULD RESULT IN AN AGREED FORMULA FOR DEALING WITH WHAT WAS A DELICATE AND IMPORTANT SUBJECT. ON AUTOMATICITY OF THE PROCEDURE, HE REHEARSED HIS ARGUMENT IN LAST WEEK'S ARTICLE 113 MEETING (OUR TELNO 3039). THE COMMISSION HAD TO BALANCE CAREFULLY INTERNAL COMMUNITY COMMITMENTS TO RESPECT THE GLOBAL CEILINGS AND THE NEED TO HAVE A COMMUNITY POLICY WHICH COULD BE DEFENDED IN INTERNATIONAL FORA. THE COMMISSION WOULD BE PREPARED TO TAKE THE INITIATIVE IN TAKING A PRODUCT FROM THE BASKET AT COMMUNITY LEVEL TO ENSURE THAT GLOBAL CEILINGS WERE RESPECTED. THIS PARTICULAR COMMISSION ROLE WOULD PE WRITTEN INTO THE REVISED VERSION OF THE COMMISSION PAPER. ON THE EXTENSION OF THE BASKET EXTRACTOR MECHANISM TO ACP AND FREFERENTIAL COUNTRIES, BECK AGREED THAT IN THESE CASES THE

RESTRICTED

BASKET