CONFIDENTIAL
Duration of the transitional period
41.
Reference is made, in paragraphs 9, 13 and 30 above,
to the gradual application of the common external tariff to
certain imports from the Commonwealth over a transitional
period, the length of which will be a matter for negotiation.
In the last negotiations provision was made for the final
step in the application of the common tariff to be taken on
1 January, 1970, the date on which the Six themselves were
expected to complete their movement towards full application.
Meanwhile, however, the Six have accelerated, and they will now
take the last step on 1 July, 1968. What can now be regarded
as a reasonable transitional period so far as Commonwealth
problems in this field are concerned? India, Pakistan and
Ceylon will plainly expect a period comparable to that which
was envisaged before. At the time when the cut-off date of
1 January, 1970, was proposed, it was, of course, impossible to
make any hard and fast assumption about the date of Britain's
entry into the Community, but the date of 1 January, 1964, was
widely regarded as a reasonable assumption. India, Pakistan
and Ceylon are likely, therefore, to expect a transitional
period of five or six years. As regards industrial
manufactures from Australia, Canada and New Zealand, it is
clear that the economies of these countries will not be
so severely affected by the application of the common tariff.
It may be that this particular problem will have been reduced
by the results of the Kennedy Round negotiations.
thus be scope for limiting the items to benefit from
There may
decalage over the transitional period to those which are
specially sensitive.
CONFIDENTIAL