RESTRICTED
APPLY THE SAGEGUARD CLAUSE IN THE CASE OF LOME CONVENTION CWTRIES SINCE THESE SAFEGUARD CLAUSES OPERATED ON A BILATERAL LEVEL AND THE COMMUNITY WOULD BE BASING THEIR ACTION ON COMMUNITY GLOBAL CIELINGS. THEY WARNED THAT THE COMMISSION WHEN CONSIDERING LEVELS FOR THE OPERATION OF THE BASKET EXTRACTOR MECHANISM SHOULD TAKE INTO ACCOUNT DECLARATIONS OF INTENT TO IMPORT. THESE REPRESENTED FIRM CONTRACTS
CONCLUDED AND WITHOUT INCLUDING THEM THE BASKET EXTRACTOR MECHANISM WOULD OPERATE AT TOO LATE A STAGE.
6. REPLYING TO THE DISCUSSION, BECK SAID THAT WHERE THERE WAS EVIDENCE OF HARD AND FAST INTENTIONS TO IMPORT, THIS COULD BE USEFUL FOR DISCUSSIONS WITH THE THIRD COUNTRY CONCERNED. HE AGREED GENERALLY WITH OUR SUGGESTED FORMULA REGARDING AUTO- MATICITY BUT WAS UNHAPPY AT THE SUGGESTION THAT THE MANAGEMENT GROUP SHOULD ONLY BE INFORMED IN THE CASE OF ACTION ON GROUP 1 PRODUCTS. HE CONFIRMED THAT WITHIN THE COMMUNITY GLOBAL CEILING THERE WERE NO INDIVIDUAL IMPORT QUOTA ALLOCATIONS FOR ACP/ CCUNTRIES. ANY SAFEGUARD LEVEL WOULD THEREFORE APPLY TO ACP AS A WHOLE. HE THOUGHT IT INLIKELY THAT EXISTING PROBLEMS WITH THE ACP COULD BE COMPLETELY SOLVED UNDER LOME I AND THAT THE NEW LOME CONVENTION WOULD HAVE TO TAKE INTO ACCOUNT TEXTILE FOLICY CONSIDERATIONS.
7. THE COMMISSION'S PAPER WILL NOW BE REVISED AGAIN IN TIME FOR FURTHER DISCUSSION AT THE NEXT ARTICLE 113 COMMITTEE
MEETING ON 7 JUNE.
C. MALTA.
8. THE UK'S REQUEST THAT THE COMMISSION WHOULD TRY TO OBTAIN A TEXTILE ARRANGEMENT WITH MALTA HAD BEEN SUSPENDED FOR THE TIME BEING. THE COMMISSION MAINTAIN THAT MALTA HAVE A NEGATIVE TRADE BALANCE WITH THE UK AND ACTION IN THE TEXTILE FIELD MIGHT JEOPARDISE OUR EXPORTS TO MALTA. WE SAID THAT WE WERE VERIFYING THIS AND WOULD REVERT. THE BENELUX DELEGATION ADDED THAT THEY TCO HAD A PROBLEM WITH MALTA PARTICULARLY WITH IMPORTS OF CATEGORY 6 AND CATEGORY 17 PRODUCTS.
RESTRICTED
/D.
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