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2nd September 1909

G. Morris Ben.

preferences offers, however small. Their grounds For this are first that failure to make any offers on cotton textiles will make renewal of the Long Term Arrangement virtually impossible; and second that textiles are the most important class of manufactures from developing countries and their omission will be a major gap in any scheme. We explained our difficulties on cotton textiles es the result of the announcement of the tariff solution and this appeard to be appreciated.

3. With regard to non-cotton textiles, in particular man-made fibres, we explained the pressures that We were under to withdrew these from our offer in. view of the inability of cher countries to meet our original conditions. Di Martino replied that in view of the U.S. and Japanese position on these textiles (they are virtually excepted from both offers) the E.E.C. would not be able to maintain their offers if the U.K. also withdrew all textiles. This would be highly regrettable in their view for the reasons given in the last paragraph. They therefore urge us to maintain a reasonable offer on non-cotton textiles so that they would not be compelled to withdraw theirs and run the risk of undermining the viability of the whole preferences scheme.

7:

Primary Products

The E.E.0. intend to argue that both agricultural and industrial primary products should be excluded from the scheme by all donor countries and that the definition of those products should be taken from the UNCTAD Secretariat document TD/B/0.2/3 of 2nd July 1965 with, in addition, non-ferrous metals. The reason for this is that the Community is unwilling to be put under any pressure to add further agricultural primary products to their offers, and to avoid this Fisk is how anxious to take out all primary products. We pointed out some of the difficulties that might result but it begins to look as though most of the major donors together with Canada and the Scandanavians, and of course Australia and New Zealand, are agreed that primary products should be out.

3. Long Loan

Di Martino emphasised at longth the impossibility.

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