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11) THE INTENTION IS TO AVOID THE REPERCUSSIONS OF AN EARLY AND COMPLETE ABOLITION OF THE SCHEME, WITH THE CONSEQUENT REFLUX OF IMPORTS, LIQUID FUNDS, ETC., AND TO PHASE IT OUT OVER A PERIOD:
V) HENCE THE REDUCTION IN THE RATE TO 40 PERCENT AS A STEP TOWARDS THE PHASING OUT OF THE SCHEME.
4. IF IT IS OBJECTED THAT HMG HAD UNDERTAKEN THAT THE SCHEME WOULD ONLY LAST A MAXIMUM OF 12 MONTHS, YOU SHOULD MAKE IT CLEAR THAT THE EXISTING LEGISLATION HAS A LIFE OF ONE YEAR, BUT THAT WE HAD NEVER UNDERTAKEN THAT IT WOULD NOT BE RENEWED
IF THE SITUATION REQUIRED IT.
5. IF YOU ARE CHALLENGED ABOUT THE LEGALITY OF THE SCHEME IN GATT AND EFTA, YOU SHOULD SAY THAT IN HMG'S FIRM BELIEF THE SCHEME IS CONSISTENT WITH OUR INTERNATIONAL OBLIGATIONS. WE ARE OF COURSE READY TO ENGAGE IN ANY DISCUSSIONS THAT OUR TRADING PARTNERS MAY CONSIDER APPROPRIATE.
(TO OSLO, COPENHAGEN, STOCKHOLM, VIENNA, BERNE, LISBON, HELSINKI, UKMIS GENEVA ONLY):
6. WE ARE TELEGRAPHING SEPARARATELY PERSONAL MESSAGES FROM THE PRESIDENT OF THE BOARD OF TRADE TO HIS EFTA COLLEAGUES.
STEWART.
[DISTRIBUTED TO OUTSIDE RECIPIENTS OF EUROPEAN ECONOMIC AND
POLITICAL DISTRIBUTION]
INTERNATIONAL TRADE DISTRIBUTION
TRADE POLICY DEPT
F.P.A.D.
EUROPEAN INTEGRATION DEPT
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