CONFIDENTIAL

transitional period.

But he was sure the

Community would understand the entirely

different crder of the problem

dairy products.

of New Zealand

We had put forward a point

of view on New Zealand's behalf, based on the continuation of the present quantity coming

into Britain. Clearly this could not be a permanent arrangement, but some sort of continuing solution was required. This was a test of the nature of the enlarged community, which would be looking across the world to 24 million Europeans. 9. Reverting to sugar, Mr. Rippon said this was a problem which concerned a number of Caribbean countries, together with Fiji and Mauritius. He was sure that the Community, with its good record of relations towards the developing countries would see this as a problem of the third world - not so much a British problem ber se as one for the enlarged Community. If the Community asked how we proposed this should be dealt with, he would say it could not just bo through a transitional period. Now that HMG had put forward a proposi- tion, the Community might wish to question this, but what we should avoid was giving the impression that the British had put forward a demand which the Community had then rejected.

10.

M. Schumann thanked Mr. Rippon for this explanation of the British attitude.

Hong Kong

11. M. Schumann said that, after the consideration of dependent territories at the last Deputies'

meeting, a working group had been set up to consider

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