2
THE EFFECTS OF ADDED VALUE TAX, IN PARTICULAR, ON IMPORTS AND EXPORTS WERE INSUFFICIENTLY KNOWN IN THE UNITED STATES
AND WERE CAUSING ALARM. THE ACCELARATION OF TALKS ON THIS IN GATT
WOULD CONTRIBUTE TO GREATER CLARITY.
MINISTER DE BLOCK ON HIS SIDE CALLED ATTENTION TO THE DIFF-
ICULTIES WHICH DUTCH EXPORTS TO THE US ARE EXPERIENCING AS A
RESULT OF THE EXCEPTIONAL POSITION ADOPTED BY THE US IN RESPECT
OF AGRICULTURAL PRODUCE WITHIN FRAMWWORK OF GATT FOR YEARS AND
BY THE WAY THE AMERICAN SELLING PRICE IS BEING APPLIED IN THE
CHEMICAL SECTOR, THE ABOLITION OF WHICH IS REAGRDED AS A TOUCH-
STONE OF THE TREND OF US TRADE POLICY.
MOREOVER, MINISTER DE BLOCK NOTED THAT THE INTERESTS OF THE
UNITED STATES AND THE NETHERLANDS WERE PARALLEL IN MANY RESPECTS
AND THAT HE GLADLY AGREED WITH A PROPOSAL TO DISCUSS THE VARIOUS
PROBLEMS OPENLY AND THOROUGHLY OVER THE NEXT FEW MONTHS WITH
THE ULTIMATE AIM OF MAINTAINING THE FREEST POSSIBLE ECONOMIC
RELATIONS.
-ENDS
FCO PASS TO BERNE BONN BRUSSELS PARIS ROME TOKYO WASHINGTON
UKDEL BRUSSELS AND UKMIS GENEVA AND SAVING TO HONG KONG AND
UKDEL OECD.
MR. OLVER
[REPEATED AS REQUESTED/
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
TRADE POLICY DEPT.
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