CONFIDENTIAL
FCO TELEGRAM NO.157 TO CANBERRA
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IN MIND IN DETERMINING WHAT PREFERENCES SHALL BE GRANTED TO
DEVELOPING COUNTRIES IS THAT COMMONWEALTH DEVELOPING COUNTRIES
SHOULD RECEIVE PREFERENTIAL ADVANTAGES IN THE MARKETS OF OTHER
DONOR COUNTRIES THAT WILL AT LEAST COMPENSATE THEM FOR HAVING
TO SHARE THE PREFERENCES THEY AT PRESENT ENJOYED IN THE UK MARKET. TO CANBERRA, WELLINGTON, PRETORIA AND CAPETOWN ONLY.
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6. YOU SHOULD STRESS THAT WHERE OUR OFFER 'COVERS ITEMS SUBJECT
TO CONTRACTUAL PREFERENCES IT IS CONDITIONAL ON THE AGREEMENT OF THE COUNTRIES CONCERNED. THIS WILL BE MADE CLEAR TO OECD (WE
PRESUME YOU WILL BE ABLE TO IDENTIFY THE ITEMS CONCERNED BUT
WE ARE IN ANY CASE SENDING A LIST BY BAG. YOU WILL NO DOUBT LET
US KNOW IF YOU NEED TO CHECK ON ANY ITEM IN ADVANCE OF THIS) WE
REALISE THAT AUSTRALIA/NEW ZEALAND/S. AFRICA HAVE A SUBSTANTIAL
TRADE INTEREST AS WELL AS GUARANTEED RIGHTS ON SOME PROCESSED
AGRICULTURAL PRODUCTS. TO TAKE ACCOUNT OF THIS WE ARE LIMITING
OUR OFFER ON CERTAIN ITEMS OF PARTICULAR CONCERN TO THEM TO A
50% CUT IN THE TARIFF INSTEAD OF DUTY-FREE ENTRY. IF WE WERE TO
LEAVE OUT OF OUR OFFER ALL THE PRODUCTS IN WHICH ONE OR MORE
COMMONWEALTH COUNTRIES HAD A TRADE INTEREST VERY LITTLE WOULD
REMAIN. WE HAVE TRIED TO STRIKE A FAIR BALANCE BETWEEN THE VARIOUS
INTERESTS INVOLVED.
7. A FEW ITEMS IN CHAPTERS 25-99 OF THE BRUSSELS NOMENCLATURE, SUCH AS CARS, TAPE RECORDERS, MAN-MADE FIBRES, ARE AT PRESENT DUTIABLE, THOUGH AT A PREFERENTIAL RATE, FROM COMMONWEALTH SOURCES. ON THESE ITEMS OUR OFFER OF DUTY - FREE ENTRY FOR IMPORTS FROM
DEVELOPING COUNTRIES WILL CREATE A PREFERENCE AGAINST DEVELOPED COMMONWEALTH COUNTRIES AND S. AFRICA. IT SEEMS UNLIKELY HOWEVER THAT OUR OFFER ON THESE FEW ITEMS, IF MAINTAINED, WOULD HAVE A VERY SIGNIFICANT EFFECT ON THEIR TRADE. YOU HAVE DISCRETION TO MAKE THIS POINT IF YOU THINK THIS WOULD HELP TO FORESTALL CRITICISM. 8. WE SHOULD BE GLAD TO HAVE THE VIEWS OF THE AUSTRALIAN/NEW ZEALAND
/S.AFRICAN
CONFIDENT IAL