MR FITZHERBERT

MR BAITHWAITE

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13 MAY 1974

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I attended yesterday a very useful (albest very long) meeting on this subject at the Department of Trade under Mr Ingram's chairmanship. The object of the meeting was to discuss with Mr Tran, the Commission official responsible for GSP affairs, questions relating to the mid-year improvements and the general review of the GSP. On the Commission side a colleague of Mr Tran's, Mr Cingolani, also attended. Officials from the Department of Trade, Customs & Excise, the Government Chemists' Department, the ODM, MAF and UKREP Brussels attended.

[N.P.]

2.

On the mid-year improvements we expressed disappointment to Mr Tran about the limited scope of his proposals. The Customs & Excise representative pointed out that there should be no difficulties about identifying the speciality Indian products in the light of which Mr Tran thought that it might after all be possible to include them, provided that the supplier in Asian countries in question would be prepared to provide certificates of authenticity. We complained about the derisory proposal on castor oil (8% to 7). Mr Tran said that the problem here concerned competition from castor oil refineries in Europe and also among the associates (Morocco and the Mala any republic). But he thought that if we pressed hard it might be possible to secure a larger concession. Mr Tran said he will be pleased if an improvement wore possible since this would be a useful precedent for trying to get other vegetable oils included in the GSP in the context of the general review later on.

I mentioned instant tea (in the light of the Ceylonese High Commissioner's recent representations to Mr Wright) and Mr Tran said he would try to see whether this could be included. He thought the prospects good.

3. I found this part of the discussion encouraging and if we can get the speciality Indian products included, a larger concession on castor oil and the inclusion of instant tea then I think that we should consider ourselves fairly satisfied with the mid-year improvements.//4We then discussed plans for the general review dealing separately with the agricultural and industrial sectors. On the agricultural sector Mr Tran was again encouraging. He said that he hoped

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