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Although quota coilings calculated on this bacis are much larger in relation to existing importe from the beneficiary countrice

in the case of the U.K., it is interesting that the proportion

of 3.6:1 by which the ceiling for the LLC exceeds that for the U.K. is approximately equal to the proportion (3.5:1) of the

BEC's total imports and exports to those of the U.K.

The

23. Although the EEC will not state this publicly, they have no intention of enforcing duty quotes on all their imports from beneficiary countries. They will have a confidential list of. sensitive products on which the quotas will be enforced and to

which further items can be added at the request of a member state; on all other manufactures and semi-manufactures (except cotton and jute goods as mentioned in paragraph 5) there will in practice-

be no limitation on duty free imports. It would be open to us

to do the same and avoid the very considerable administrative

burden of imposing quotas on all proferential imports. number of products that we adjudged to be sensitive and to be controlled within the quota ceilings would depend on the number of sensitive products adopted by the EEC (although this could not be stated publicly) and on the pressures we are subjected

It would to by domestic producers and by the Commonwealth. follow that if a domestic industry (or a Commonwealth supplier) complained to us after implementation of the preference scheme that imports of a particular product were exceeding the quota, we would have to add that product to the "sensitive" list without any very detailed investigation of the strength of the case. 24. As noted above, the EEC are offering duty free entry for cotton textiles but only within the quantitative limits negotiated

under the GATT Cotton Textiles Arrangement. It might suit uc

very well to do the same, because only some 5 per cent of our

/imports

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