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that the cut-off limit had been reached or exceeded then it would be implemented. On sensitive products there would be strict surveillance all the time and the cut-off figure would be strictly observed. The Community would probably also wish to divide the quantities of sensitive imports between the member states before the scheme came into operation but this would be a purely internal affair. They would also probably provide that when any single less developed country had exported to the Community 50 per cent of the tariff free quota it should cease. to benefit, for that product, fron tariff free. entry.
5. Tran emphasised again that the measures outlined above might well be changed. For one thing, it was possible that agreement would not be reached on the simple formula reported above for the tabling of the OCD offer, It might be that some member states would insist that there should be two different percentage cut-off figures, one for sensitive products and a higher one for non-sensitive products. In that case a list of the sensitive products would clearly have to be tabled, which was what the Commission was hoping to avoid. Also there had been no agreement yet on the calculation of the percentage cut-off figure or figures. The French had abandoned their proposal for cut-off at 3 per cent of Community consumption, having accepted that this was quite impracticable to calculate and operate. The probable method to be retained would be a percentage of Community imports from developed countries, but it was not clear whether this would include imports from East European countries or not.
6. On Hong Kong, Tran said that things had also noved a bit, and in a favourable direction. On this occasion the Germans and the Dutch had both been very firm about the need to include Hong Kong. It had generally boen agreed that there should be no a zriori exclusion of Hong Kong. But there had been no advance on settling how, if at all, Hong Kong should be included in tho scheme and the work the Commission was currently doing in the fields mentioned above did not take into consideration the question of Hong Kong, which was being left on one side. Tran mentioned, as a solution that was being canvassed, that Hong Kong should be given a specified percentage within the tariff quotas on sensitive products, say 10 per cent or 20 per cent. mentioned this in response to my question whether Hong Kong might benefit from the provision that any single less developed country might take up to 50 per cent of a tariff quota before tariff free preference was cut off.
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7. Tran concluded by saying that the next big discussion at Community level would probably take place in Genova after the UNCTAD meeting on 21 January. By that stage things should be reach- ing a fairly final form, since the Commission would have to put formal proposals to the Council early in February to enable a Council decision to be taken in time for the tabling of offers on 1 March,
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