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more sensitive but its use would still be subject to close

scrutiny. In the U.S. view tariff quotas or quantitative

limitations were more uncertain than an escape clause because

there could be no guarantee to exporters that any particular

shipment would qualify. Finally, the U.S. did not expect that

special (existing) preferences should be eliminated across the

board but only on those products included in the generalised

scheme.

Discussion of the Report

19. At that point the Chairman (Herbst Germany) cut short the

general debate and said that the Committee should concentrate on

the Report before it. After some discussion of particular

amendments proposed (particularly to take account of the new

Japanese offer) it was agreed to set up a drafting group to

consider all amendments and report back to the Committee.

proved to be helpful as the Committee very soon accepted the

specific amendments proposed when it considered this matter again

on the last afternoon. The Report as amended is being issued as

This

a Council document and will come before the Council in the course

of this week.

Beneficiaries

20.

As it turned out there were long discussions on the question

of beneficiaries which occupied a large part of two Sessions of

the Committee. This was sparked by the developing Member

Countries (Greece, Turkey, Spain and Portugal), who all con-

sidered that they should qualify as beneficiaries and were all

opposed to the inclusion of the words "in general" in paragraph

12 of the Annex. However, as this was a paper by the donor

countries for submission to UNCTAD, the developing countries

were not able to express their views by, e.g. associating them-

selves with the U.K. footnote (although Portugal tried at one

stage to do so). They therefore asked for additional para-

graphs to be added at the end of the first part of the Report

/to express

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