TNAG-0763-FCO40-967-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 204

1. BEFORE THE COUNCIL DISCUSSION, TRAN VAN THINH (COMMISSION) TOLD US PRIVATELY THAT HE HAD YESTERDAY PERSUADED THE PORTUGUESE AUTHORITIES TO AGREE, GIVEN THE IMMINENT COUNCIL DISCUSSION, THE FOLLOWING ADJUSTMENTS TO THE AIDE MEMOIRE INITIALLED AD REFEREV

OV 26 APRIL:

CATEGORY 1 (COTTON YARN)

CATEGORY 2 (COTTON CLOTH)

CATEGORY 3 (SYNTHETIC CLOTH)

REVSOM

DIMINISH UK SHARE BY 50 TONNES

INCREASE UK SHARE BY 50 TONNES AND

INCREASE GERMAN SHARE BY 120 TONNES

DIMINISH UK SHARE BY 50 TONNES

59.04

(CORDAGE)

DIMINISH UK SHARE BY 50 TONNES

2. THE PORTUGUESE HAD REFUSED TO HAVE THESE ADJUSTMENTS INCORPORATED IN THE AIDE MEMOIRE AS FORMALLY AGREED BY THE PORTUGUESE CABINET: BUT HAD AGREED THAT, ON THE FORMAL ACCEPTANCE BY THE COMMUNITY OF THE AIDE MEMOIRE, AN AGREED MINUTE WOULD BE EXCHANGED PUTTING THESE CHANGES INTO EFFECT.

3. TRAN ALSO ASSERTED THAT THE PORTUGUESE AGREEMENT WAS CONDITIONAL

ON ALL RESERVES ON THE AGREEMENT WITH THEM BEING LIFTED AT TODAY'S

COUNCIL SUBJECT ONLY TO SOLUTIONS BEING FOUND FOR OTHER MEDITERR-

#NEAN PROBLEMS. WE INSISTED THAT THERE COULD BE NO QUESTION OF OUR WITHDRAWING OUR SUBSTANTIVE RESERVE ON PORTUGAL, SINCE WE OBVIOUSLY NEEDED TIME TO EXAMINE THE IMPROVEMENTS THE COMMISSION HAD OBTAINED. WE PERSUADED TRAN TO BE CONTENT WITH A POSITIVE REFERENCE (CF, PARA 4 OF TELEGRAM UNDER REFERENCE) TO THESE CHANGES (WHICH HAVE NOT YET BEEN REVEALED TO OTHER MEMBER STATES) AS CAUSE FOR ENCOURAGEMENT, TRAN LEFT US IN NO DOUBT, HOWEVER, THAT THIS WOULD BE THE MOST WE COULD EXPECT FROM THE PORTUGUESE.

FCO ADVANCE TO:-

FCO

CAB

DOI

DDT

BRIGHT

PS/S OF S, PS/MR JUDD, PS/PUS, GREY EID(1), MCCLUNEY, JENKINS (EID(E)).

FRANKLIN, BIRCH.

FARRY, CROMPTON (CT), HUDSON, RIDLEY.

SPENCER, HELLINGS (CRE1), MISS LACKEY (CRE4), GRAY.