A
GRS 380
PRIORITY
YPHER CAT A
FM UKREP BRUSSELS 261740Z
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DESKBY 270820Z
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REF.
TO PRIORITY F C O TELNO. 4504 OF 26 SEPTEMBER. 1973.
1.
0
MY TELNO. 4471:
GENERALISED SYSTEM OF PREFERENCES.
AS WILL BE CLEAR FROM MY TELEGRAM UNDER REFERENCE, CONSIDER- ATION OF THE IMPROVEMENTS TO BE MADE IN THE GENERALISED SYSTEM OF
PREFERENCES FOR THE ENLARGED COMMUNITY IN 1974 13 NOT GOING WELL
FROM OUR POINT OF VIEW.
24 THE COMMISSION'S PROPOSALS, WHICH THE WORKING GROUP IS CONSIDERING, WERE THEMSELVES DISAPPOINTING ENOUGH AND SEVERAL OF
THE MEMBER STATES, NOTABLY FRANCE, ITALY AND GERMANY, HAVE BEEN
· INTENT ON REDUCING THE SCOPE OF ADDITIONAL CONCESSIONS PROPOSED
BY THE COMMISSION. THIS IS GOOD HUNTING COUNTRY FOR THE MINIMALISTS BECAUSE THE ESTABLISHED RULE HAS BEEN THAT THE LOWEST
PROPOSAL WINS.
3. OUR INTEREST, ON THE CONTRARY, IS IN A GENERAL LIBERALISATION OF THE SYSTEM WHICH WOULD INCIDENTALLY RELIEVE US OF THE OBLIGATION TO INTRODUCE NEW, AND IN SOME CASES, HIGH DUTIES: IN A SUBSTANTIAL EXTENSION OF GENERALISED PREFERENCE IN THE FIELD OF PROCESSED AGRICULTURAL PRODUCTS: AND IN OPENING UP THE SYSTEM FOR THE ASIAN COMMONWEALTH COUNTRIES, INCLUDING HONG KONG, TAKING ACCOUNT OF THEIR PROSPECTIVE LOSS OF COMMONWEALTH FREE ENTRY AND THE MASSIVE CHANGES IN THE PATTERN OF TRADE FLOWS FROM THESE COUNTRIES TO THE ENLARGED COMMUNITY AS COMPARED WITH THE ORIGINAL COMMUNITY.
A. THESE CONSIDERATIONS SUGGEST THE FOLLOWING APPROACH. FIRST, WE SHOULD INSIST ON PROMPT EXAMINATION OF OUR PROPOSALS ON
PROCESSED AGRICULTURAL PRODUCTS, IT IS FOR CONSIDERATION WHETHER
THERE MIGHT BE VALUE IN LOBBYING IN CAPITALS TO BROADEN THE BASE
OF THE SUPPORT WHICH WE ALREADY HAVE FROM THE DUTCH. /5. SECOND,
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