TNAG-0763-FCO40-967-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 153

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MANAGEMENT COMMITTEE 5 SEPTEMBER 1978

A. Current and Pending Consultations

1. Argentina, Uruguay, Brazil

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A working paper (attached A)was circulated. Bevan (Commission) requested outstanding 6-month statistics. send a warning to Argentina and Uruguay about increased exports from one year to the next. He suggested a Community approach to Brazil to ask for self-restraint on exports. France and the UK were in favour of operating the safeguard clause. The German delegation said it would be against their interests to be included in a Community approach and entered a reservation. Under pressure from the Commission they agreed, without optimism, to reconsider their position. The questions will be re-examined in the 113 Committee.

2. Mexico

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A Note Verbale (attached B) from Mexico to the Commission requested the transfer of 300 tonnes of cotton yarn from Germany to the UK. The UK rejected a simple transfer but agreed to look at the Commission's suggestion of an exchange within certain criteria. The Commission will look at possible openings for transfers.

3. El Salvador

Following the Note Verbale sent by the Commission in July there was discussion yesterday with the El Salvador Mission on the UK problem of import levels of cotton yarn. Some form of self- restraint had been agreed and the matter had now been referred to the El Salvador government. The UK had responded to a request for a figure and a reply from El Salvador was to be expected in about a week.

4. Malaysia

Consultations will be held on 15 September at 10.00.

5. Philippines

No date has yet been fixed for a meeting. The Philippines have undertaken to suspend exports of Category 6 to the UK.

6. Hong Kong

Consultations are planned during Mr Mills's visit to Brussels on 25/26 September. Hofmann (Commission) warned that these consultations also could bring little satisfaction. Much depended on what was decided by the Nomenclature Committee, meeting at present.

7. India