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reasonable transitional period.
(There is nothing
in the Treaty of Rome which would necessitate us
imposing stricter control of capital movements
within the Sterling area).
(3) Sterling We do not see any incompatibility
between the role of sterling as a reserve
currency and the sterling balances on the one
hand and the Treaty of Rome on the other. But
we are willing to consider with an open mind any
constructive suggestions for changes in this field. (4) Agriculture There are four main aspects of the
agricultural problem: the effect on cur balance
of payments (including the question of contributions
to the Guidance and Guarantee Fund); the effect on
the cost of living; the effect on Commonwealth
trade; and the effect for our farmers.
Commonwealth problems
7. It is, of course, with the Commonwealth aspects of
membership that the countries which the Secretary of State is
visiting will be mainly concerned.
be affected by:
(1) Common external tariff
They would, in particular,
Commonwealth countries have traditionally exported
free.
virtually all their products to the British market duty Moreover, they enjoy various tariff preferences
that average about 12% on those products on which there is preference and about 7% on all their exports to
If we joined the Community and applied the
Britain.
common external tariff, Commonwealth countries would
face positive tariffs on many items where they once had
free entry and reverse preferences in favour of the
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/Community