CONFIDENTIAL

already been fully discounted.

Australian primary producers

feel that they can count on a lengthy transitional period.

There appears to be reccgnition of the fact that an

economically sound Britain is of greater value to Australia

than a Britain in a weak economic position. However, the

Minister for Trade and Industry, Mr. McEwen, has said that

Australia was in danger of getting left out of the trading

blocs and has said that he is "fearful" if the Kennedy Round

proves unsuccessful.

CONFIDENTIAL

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