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(c) exclusion by country by product only in

accordance with safeguard procedures;

(d) exclusion by product on a non-discriminatory

basis both for initial exceptions and safeguards.

Reverse Preferences

not

13.

The PCO paper does take a clear line on this subject. I

suggest that we should stick to the earlier agreed line that

this problem can only be looked at when an agreed scheme begins

to take shape and that, in any case, it is up to the developing

countries to decide whether the elimination of reverse

preferences is in their own interests, and that they will not do

so until they have been able to see and assess our agreed OECD

scheme.

14. I am copying this submission to the other departments

most closely concerned. In the time available, it has only

been possible to consult them by telephone, but we have done our

best to incorporate their views.

Copies to:- Mr.Carter Mr.King

Mr.Robinson Mr.Whitehead.

(R. G. KRITTEN ) Trade Policy Department 4 September, 1969

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