- 4.-
The purpose of this concept (see footnote) was to enable the
United States to exclude Cuba and other Communist states, and
indeed to enable us and the other donors to exclude any country
for political but not trade reasons, but to make sure that all other
developing countries, however competitive, would be beneficiaries
of the schemes of all
11 the donors. It was envisaged that the only
ways in which the problems of any over-competitive goods could be
net would be by way of exceptions or safeguards. If this principle,
which had been generally endorsed by OECD ministers in 1967, wero
put into practice by all, we would have achieved our objective
under (ii), although the USA has always made clear her objection
to the maintainance of reverse preferences.
୨ For some time it has been clear that most of the other donors
have not been prepared to adhere to the self-election principle.
Only New Zealand has wholeheartedly supported us, although the
Nordic Group and Canada have been sympathetic. We have therefore
had to make clear in the OCD that while we still think self-
election would be the best solution, we cannot be expected to have
a significantly longer list of boneficiaries than other major donors.
It would clearly be inequitable, both to domestic industry and
to industries in Commonwealth developing countries having to share
their preferences in our market, if we were to include significant
producers of manufactures and other goods in cur scheme that would
not benefit from the other schemes. But we are not necessarily
bound to adopt precisely the same lists as other donors if we do not
want to.