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but the atmosphere was set primarily by the two United States statements. The first said only that they had not tabled lists in OECD, that they could make no definite statement of position before the completion of the review of trade policy, and that "policy making officials were seized with the problem". The second, made to a specially summoned Plenary Session, stated that the President had authorised the preparation of lists for submission to the OECD group, but added in terms that "no final decision had been taken regarding participation in a temporary generalized system of preferences".

4. The developing countries reacted in predictable terms and only the skilful Chairmanship of Swaminathan (India) cut short an increasingly bitter series of accusations of bad faith in which Allaf (Syria), the spokesman of the 77, took the lead. The debate was ended at the Chairman's request after Reed (Norway) had stated on behalf of Group B (but without prior consultation) that Resolution 21(II) merely sat down aims, and that no one was committed at this stage to any arrangements for a generalised scheme of pre- ferences. The Committee's report on this item ends on this pessimistic note.

Mechanics

5.

The dissatisfaction of the Group of 77 on substance increased their insistence on getting something "positive" on machinery; and their demands were quickly formulated as: (i) the creation of working groups on rules of origin and on the institutional machinery for administering the scheme, which should start work immediately; and

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(ii) the establishment of a number of other working groups to deal with different aspects of the scheme, which could be put to work before the third session, subject to documentation being provided either by the OECD or by the UNCTAD Secretariat, in accordance with an agreed consultation procedure involving the Secretary General and the Bureau of the Committee.

of this, Group B was prepared to accept only the working group on rules of origin,

5. The question was debated at length in a series of Contact Groups, in which both the Chairman and the Secretary- General (who was in regular attendance) played a constructive and moderating role. Their contribution, and the fact that Group B adhered firmly to the line agreed in Paris, were largely responsible for the satisfactory outcome. Of the Group of 77 representatives, Pradhan (India) and Brillantes (Philippines) were both effective and modcrate, while the Brazilians and the Syrian leader of the Group led the extremist camp.

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