has been modified to take account of the fact that only the
Netherlands is a party to the Bacon Understanding, in accordance
Bacon
with which United kingdom bacon' imports are regulated.
imports are not subject to quotas as such and hence do not
appear in the Annex.
6. We need no longer include a reference to our disappointment
at the lack of a Belgian sugar quota in view of the introduction
of the Common Market in sugar.
7.
Thé paragraph on butter was a carefully drafted counter
proposal in connexion with the draft 1967 Agreed Minute (not yet
agreed) put forward by the Benelux countries. Although it looks
weak by comparison with the passage on canned and bottled apples
we cannot agree to any language which recognizes the "special"
interests of the Benelux countries in exporting butter to the
United Kingdom, or which suggests that Benelux interests have not
been taken account of in the past.
The
8. The paragraph on coal imports to the Netherlands was similarly
proposed by us in connexion with the draft 1967 Agreed Minute and
its language parallels that of the paragraph on butter.
reference to reallocation is intended to refer to (a) the re-
allocation of unused licenses between importers in a given quota.
year which the Netherlands Government have agreed to and (b) the ́.
reallocation to the United kingdom of unused parts of other
countries quotas in a given quota year. It is not intended to
(See
refer to carry overs from one quota year to another.
attached Letter). We could agree to drafting changes designed
.to make this clear.