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26. As regards tactics in UNCTAD Reed (Norway), in his

capacity as Chairman of Group B in the Special Committee on

Preferences, suggested that the developing countries should be

invited to put questions in writing on the submissions to OECD

countries. This would enable the latter to keep as much

solidarity as possible by submitting joint or co-ordinated

replies. It was agreed that, while this tactic should be tried,

it was unlikely to succeed for very long and that a fairly early

meeting of the UNCTAD Preferences Committee could hardly be

avoided. It was, however, agreed that at such a meeting Group B

countries should strongly resist the establishment of working

groups at this stage to examine all aspects of a preferences

scheme in detail. Further meetings of the Working Group on

Origin Rules could nevertheless be accepted. This was by no

means a detailed discussion on tactics and further consideration

of this matter will obviously depend on the developing countries'

reactions to the submissions.

Further work in OECD

27. No arrangements were made by the Committee for continuing the

work in OECD. But clearly a lot more work will be needed before

anything definitive can be agreed between the prospective donor

countries, including the evaluation of the U.S. and Japanese

schemes. There was some talk in the corridors, which appeared

to have been started by the Secretariat, that further progress

would be difficult in such a large body as the Ad Hoc Group and

that the next step should be for the major prospective donors

(the U.S., U.K., E.E.C., Japan and perhaps the Nordics as a group)

to get together privately to try to sort out their ideas.

well be that this idea will find favour although, so far as I

know, nothing was decided last week. If so, such a group would

probably be the best forum for a thorough airing of the crucial

question of beneficiaries, including, of course, the position of

Hong Kong.

It may

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/P.S.

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