TNAG-1030-FCO40-1280-Proposed-visit-by-Humphrey-Atkins--Lord-Privy-Seal--to-Hong--1981 — Page 72

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consensus the Commission stated that while they would

recommend the Council of Ministers to accept the'

protocol for the time being, continued participation by

the EC in the MFA beyond end-1982 would depend on the

negotiation of satisfactory new bilateral agreements

with the individual supplier countries concerned.

These negotiations will take place during the course of

1982 since the EC's existing bilaterals under MFA 2 đo

not expire until end December. The reason why the

Commission has entered this reservation is that while

the MFA 3 extension protocol includes references to all the important points in the negotiating mandate agreed by the July, November and December Councils (in parti- cular cutbacks on the dominants, a surge mechanism and

low growth) it is not in itself sufficient to guarantee

that it will be possible to achieve EC objectives in

the negotiations on the bilateral agreements.

4.

"

It would be best to avoid being drawn into specu-

lation about what might happen if the Community (by far the world's biggest importer of low-cost textiles) were to be placed in a position of having to consider carrying out its threat to withdraw from the MFA.

point to stress is the importance of the supplier countries helping to avoid such a situation by making a

success of the bilateral negotiations.

The

But the fact is

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/that