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There was

some further discussion of the short section on

"beneficiaries" in the UNCTAD submission but the U.S. and

EEC continued to refuse to drop the words "in general".

AS

a result Kemmis, after repeating the U.K. position on the self-

election principle, asked for the addition of a footnote to

read as follows:

otion

"the United Kingdom submission was based on the assumpt

that all donor countries would adopt the self-election

principle in accordance with document TD/56"

As it turned out this section (paragraph 12 in the Annex to

TC(69)10) produced a long discussion in the Trade Committee

(covered below). On the specific question of the above foot-

note, however, I suggested a strengthening which was accepted

by Goldsmith and will appear in the version of the Report

coming from the Trade Committee. It now reads as follows:

"The United Kingdom considers that all donor countries

should adopt the self-election principle in accordance

with the relevant paragraphs in document TD/56 and its

submission was based on the expectation that this

assumption would prove to be justified."

Later New Zealand also associated itself with this footnote.

10. For a further account of the position at the end of the

Ad Hoc Group meeting see also the enclosed copy of a minute

from Kemmis to Goldsmith dated 5 November.

Trade Committee Meeting

11.

Preferences were only one item on the Agenda for the

Trade Committee but it occupied the greater part of the time

available.

12. The consideration of the Ad Hoc Group Report started with

general statements. The Japanese explained their new sub-

mission on the lines set out above. The U.S. (Kronk) said

that their submission involved a major policy decision.

had been guided by four principles essential to the scheme.

/First liberality

They

:

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