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VY(B)L 51-7406

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and associate members of the enlarged

Communities where they now enjoy

preferences.

2: This would carry different implica-

tions for different Commonwealth countries

The CET on many raw materials is nil; and

duty-free access to the U.K. market of

Commonwealth exports of such items as wool,

iron ore, tropical oil seeds, sisal, hides,

skins and crude rubber would not be

impeded.

Manufactured goods would, how-

ever, be subject to the CET and this would

apply particularly to exports of such

products from Canada, Australia, New

Zealand, the Asian Commonwealth countries

and Hong Kong. The CET would also apply

to a wide range of tropical products.

3. The Commission have proposed that

there should be a freeze on the applica-

tion of the CET to those developing

Commonwealth countries seeking association,

until at latest 31 January, 1975 (the

date of expiry of the present Yaoundé

Convention), to allow them time to

complete their negotiations. In this

case the CET would not affect them unless

their association negotiations failed.

(For the countries potentially falling

into this category see parcs 13-16 below).

(ii) Aid

The Treaty of Rome commits the

Community to contribute to the progressive

development of the associated states and

the dependent territories of member states.

With the exception of Luxembourg, the BEC

/Member

CONFIDENTIAL

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