CONFIDENTIAL
It
in
establishment of an UNCTAD Bərking Party on ●rigin if the developing countries press for this at the second me ting of the UNCTAD Special Committee at the end of April. was accepted that the Ad Hoc Working Group itself would need to determine this in the light of overall tactics but, general, the origin group saw no objection from a technical point of view to the early establishment of an UNCTAD Working Party. The hope was expressed, however, that the timing involved would give the group the opportunity to discuss further at its meeting in mid-May what might be said in UNCTAD.
Conclusions
12. In my view, despite the general agreement on the desirability of drawing up a single system of origin for a preferences scheme, it will be very difficult to achieve this aim in practice. The main reasons far this are that the C will not be willing t● depart from their wn system in more than miner degree and that the Americans (who do not have a tariff based on the Brussels Nomenclature) will almost certainly not be ready to adopt the C system or any variant of it. Despite Scandinavian objections it may, however, be possible that most European countries will harmonise more or less on the DC system. These factors will need to be taken into account and I would suggest that, in the first instance, a study should be set in hand of the BN main head to main head transformation system in the light of the Hong Kong list of intermediate and terminal processes of manufacture.
13.
I doubt whether it will be necessary for me to attend the meeting on 9/10 April which will anly be considering the draft of the group's interim report. I will, however, endeavour to forward you copies Af this report when it is available.
DJCJ/mms
Distribution:
without enclosures
Director, Hong Kong (3 copies) A.L.; A.B.; ·.W.
Mr. H. Stewart, Hong Kong Dept., F.C.O.
Mr. R Yates (H.M. Customs and Excise)
•
Mr. 0.. Kermis (Board of Trade, CRE1)
Mr. C. Lowry (Board of Trade, Tariff Division) Mr.
B Fall, UKMIS, Geneva.
•
Mr. T. Muir, UKDEL to OECD, Paris.
CONFIDENTIAL