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original UK submission and the substitution of a completely

different one.. To this we can only say that it has alway a

been made clear that we reserved the right to modify our

offers in whatever way necessary.

The reactions of the USA,

Japan and smaller donors should not, however, concern us too

much. The administrative difficulties caused for us by adopting

duty quotas is discussed in paragraph 25 below. Importers would

also object that duty quotas would cause uncertainty as to

duty payments that would face them, but against this will be

offset the considerable value of duty free entry within the

quota (which would accrue more to them than to developing suppliers)

22.

If the UK. were to opt for duty quotas on EEC Lines it would

seem reasonable, since the EEC exclude intra-Community trade and

imports from the associated states and from Morocco and Tunisia

in calculating the supplementary amounts of the quotas, for us

to exclude imports from E.F.T.A., the Irish Republic and the

Commonwealth Preference Area. The large volume of imports from

the latter would help to redress the imbalance resulting from

the small size of E.F.T.A. compared with the EEC. Total imports

into the U.K. from non-Commonwealth developing countries in

1967 of goods in SITC Sections 5-8 were 262 million (not

including imports of 47 million from Spain) and 5 per cent of

imports from other countries excluding E.F.T.A., the Irish

Republic and C.P.A., was 205 million, giving a total of 467

million. The comparable total for the EEC is 1,691 million,.

made up of imports of 1,164 million from beneficiary countries

(not including Hong Kong or Spain) together with 527 million,

equal to 5 per cent of imports from other non-Community sources.

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/although

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