ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77)222
Vol.1977/0084

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)222 final
Brussels .2June 1977
Recommendation for a
COUNCIL DECISION
authorizing theCommission toopen
negotiations with Hungary forthe
conclusion ofanAgreement ontrade
intextiles
(submitted totheCouncil tortheCommission )
CCfM(77 )222final

EXPLANATORY MEMORANDUM
1• TheCommunity isaparty totheArrangement regarding Interna­
tional Trade inTextiles (MFA).Article 4ofthis Arrangement leaves
open thepossibility forparticipating countries toconclude bilateral
agreements between importing andexporting countries .TheCommunity was
oftheopinion that itwas through theconclusion ofsuch bilateral
agreements with itsprincipal suppliers that themain objectives ofthe
MFA ,particularly theorderly andequitable development oftrade in
textiles ,could best beachieved .
Inaccordance with this view ,negotiations have been conducted
with anumber ofnon–Community countries .
2. ThePermanent Representatives Committee decided atitsmeeting on
12March 1975 that negotiations should also beproposed bythe Community
tothethree State –trading countries which areparties totheMFA–Hungary ,
Poland andRomania (without prejudice tonegotiations onacomprehensive *
trade agreement ).Italso agreed thetext ofaletter tobeaddressed by
theCommission tothethree countries indicating thewillingness ofthe
Community toopen negotiations which ,"while taking account ofthediffe­
rences incommercial structures ,would bebased ontheprovisions of
Article 4oftheMFA"(Beetext ofletter inAnnex A).
On8March 1977 "theHungarian authorities replied (seeAnnex B)
that they were prepared toopen bilateral negotiations with theCommunity
with aview toconcluding anAgreement ontrade intextiles ,negotiations
which would take place onthsbasis ofproposals concerning bilateral
negotiations made intheframework oftheprovisions oftheM.F.A. ,
taking particular account ofArticle 4thereof .
*
••
3? Inview ofHungary rsreply totheCommunity offer ,theCommission
isoftheopinion that negotiations with Hungary should beopened assoon
aspossible *
•/•

In -unofficial conversations "between the Commission 'sservices and .
theHungarian authorities andinmeetings oftheCouncil 'sTextiles Group
onthepreparation ofnegotiations with oneoftheState –trading countries
1referred toabove certain elements which could serve asabasis forthese
negotiations have emerged .
Inthe light ofthese elements theCommission considers that the
negotiations with Hungary should begoverned bythesame criteria asthose
used fortheother negotiations which have already taken place ,preserving
those items which arenecessary totake account ofthedifferences in
commercial structures mentioned intheCommission 'sletter ,referred to
above inpoint 2.
Ontheinternal level ,theprovisions adopted fortheprededing
negotiations ,particularly burden–sharing ,should apply®
4« Consequently ,theCommission recommends totheCouncil ,pursuent '
toArticle 113oftheTreaty ,that itadopt theattached decision ,,
1Itshould benoted that negotiations have meanwhile taken place with
Romania ,this country having accepted theCommunity 'soffer tonegotiate ,
andanAgreement wasinitialled with that country on10November 1976 «
Arecommendation foraCouncil Decision authorizing theCommission to
open negotiations with Poland isatpresent being examined bythe
Council ,nowthat Poland hasalso accepted theCommunity 'soffer to
negotiate .

RECOMMENDATION FORACOUNCIL DECISION
authorizing theCommission toopen negotiations with Hungary
fortheconclusion ofanAgreement ontrade intextiles
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Article 113thereof ,'
Having regard totherecommendation from theCommission ,
Whereas Article 4oftheArrangement regarding International Trade in
Textiles leaves open thepossibility fortheconclusion ofbilateral
agreements between importing andexporting countriei j
Whereas theCommunity hasconsidered that theconclusion ofsuch bilateral
agreements with thethird countries which areitsprincipal suppliers would
best enable ittoachieve theobjectives ofthesaid Arrangement regarding
international trade intextiles ;
Whereas ,consequently ,theCommunity hasproposed toHungary ,aparty to
thesaid Arrangement ,theopening ofnegotiations fortheconclusion of
anAgreement ontrade intextiles $whereas Hungary hasresponded favourably ,
HAS DECIDED ASFOLLOWS s
Article 1
TheCommission iehereby authorized toopen negotiations with
Hungary fortheconclusion ofanAgreement ontrade intextile products ,
inaccordance with theprovisions oftheArrangement regarding International
Trade inTextiles .

TheCommission shall conduct these negotiations inconsultation
with theArticle 113Cofflmittee andonthebasis ofthedirectives ■
annexed hereto#
Done atBrussels .For the Council
The President

ANNEX
Directives fornegotiations with Hungary
I. Items identical with those adopted with regard toall thethird
countries with which the Community hasnegotiated ,
a)Voluntary restraint agreement ,with
anadministration system which includes double –checking .
b)Coverage oftheagreement established selectively onthe
basis ofthe criteria inArticle 4oftheMFA :elimination
ofreal risks ofmarket disruption andthefixing ofceilings
based onthat concept .
c)Binding consultation clause andregional measures .
d)Provisions forflexibility ,carry-over andanticipation .
II. Additional items
a)Inclusion oflinen inthecoverage oftheagreement .
b)Provisions relating tooutward processing traffic :ofthekind
adopted forYugoslavia .
III .Spécifie items
deriving from thedifferences incommercial structures
(particularly prices ).
–Conditions analogous tothose adopted onthis subject inthe
negotiations with Romania *