GRS 1070
PRIORITY
CYPHER CAT A.
FM UKREP BRUSSELS 28193GZ
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RECEIVED IN REGISTRY No. 51
2 - APR 1974
HKK6/598/1
74
TO PRIORITY FCO TEL NO 1577 OF 28 MARCH/INFO SAVING BRUSSELS (FOR DODGE) HONG KONG NEW DELHI ISLAMABAD DACCA COLOMBO AND BELGRADE,
GENERALISED PREFERENCES
Į
:
WE MET THE COMMISSION REPRESENTATIVES ON 27 MARCH, PRECEDING THE
MEETING OF MEMBER STATES UNDER COMMISSION CHAIRMANSHIP ON 28
MARCH, THE MAIN SUBJECT OF DISCUSSION WAS THE COMMISSION'S
PROPOSALS FOR REFORMING THE GENERALISED PREFERENCES SYSTEM TO
DEAL WITH THE PRODLEM OF THE MOST COMPETITIVE OF THE DEVELOPING
COUNTRIES. CONSIDERABLE DIFFERENCES OF VIEW EMERGED ABOUT THE
DETAIL OF THE PROPOSALS THOUGH THERE WAS A MEASURE OF AGREEMENT,
FROM WHICH WE DISSENTED ON THE PRINCIPLE. THERE WAS ALSO
DISCUSSION OF PROCESSED AGRICULTURAL PRODUCTS. THE COMMISSION
WILL SUBMIT A FORMAL PROPOSAL FOR A MID-YEAR IMPROVEMENT IN THE
SCHEME TO THE COUNCIL WITHIN THREE WEEKS. THIS WILL BE AIMED
PARTICULARLY AT THE COUNTRIES OF THE INDIAN SUB-CONTINENT, AND WILL
COME OUT JUST BEFORE THE FIRST MEETING OF THE INDIA/EEC JOINT COMMITTEE. FOLLOWING THE MEETING WE AND THE COMMISSION, HAD A BRIEF DISCUSSION WITH THE INDIANS ABOUT THE CONTENTS OF SUCH A PROPOSAL. THROUGHOUT WE PARTICIPATED ON THE BASIS OF A GENERAL
RESERVATION.
INDUSTRIAL PRODUCTS
2. THE COMMISSION INTRODUCED THEIR PAPER BRIEFLY. THE MAIN OBSTACLE TO REDUCING THE SENSITIVE LIST IN THE PAST HAD BEEN THE FEARS OF SOME MEMBER STATES ABOUT IMPORTS FROM A SMALL NUMBER OF HIGHLY COMPETITIVE DEVELOPING COUNTRIES. THIS HAD RESULTED IN MAKING THE SCHEME WORSE FOR ALL BENEFICIARIES. THE MAIN PROBLEM WAS YUGOSLAVIA, PARTICULARLY ITS EXPORTS TO NEIGHBOURING COUNTRIES (IE ITALY) BUT HONG KONG WAS ALSO A DIFFICULTY. OTHER BENEFICIARIES HAD COMPLAINED ABOUT THE DISPROPORTIONATE SHARE OF THE BENEFITS CF THE COMMUNITY'S SCHEME TAKEN BY THESE COUNTRIES. IF A SOLUTION COULD BE FOUND TO THE PROBLEM OF THE HIGHLY COMPETITIVE, THIS WOULD MAKE POSSIBLE A MAJOR IMPROVEMENT IN THE SCHEME FOR THE BENEFIT OF THOSE COUNTRIES FOR WHOM IT WAS PRIMARILY INTENDED. THE SOLUTION MUST BE ABLE TO BE PRESENTED AS NON-DISCRIMINATORY.
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WE SAID