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CONFIDENTIAL

United States Position

This

9. There was also some talk about the U.S. position. Mr. Goldsmith said

that all American officials concerned with the preferences issue were

playing their cards very close to their chest and he had been able to obtain

very little, if any, information on what their intentions were. However,

his guess would be that the Americans would adopt an orthodox safeguards

procedure rather than introduce duty quotas, that their exceptions list would

be a fairly long one and that they would not grant duty free entry to

developing countries, but only a partial cut, perhaps of the order of 50%

in most cases, although this might be different with some products.

was, of course, only a guess. Tran replied that the Community had also

not found out much about the american position. His guess was that one of

the reasons for this was that they were still in a very fluid position.

added that he would be surprised if, when it came to the crunch, the

Americans were able to meet the 1 March deadline. Mr. Goldsmith explained

that the fact that in the two largest import markets, the EC and the U.S.,

the preferential systems finally adopted were likely to be so different would

make it difficult for the U.K. to assess the position from the point of view

of burden-sharing. If it turned out that the U.K. had to adjust its

position in the light of burden-sharing, a decision would need to be taken

as to whether this should be done by moving in the direction of duty free

quotas a la Community or tariff cuts which would give less than duty free

entry in line with the Americans.

He

U.K. Mission,

Geneva.

24 January, 1969

(D.J.C. Jones)

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