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3. WE SAID, SPEAKING PERSONALLY THAT WE DID NOT THINK THAT LIMITING
THE ACCESS OF THE MOST DEVELOPED WAS THE RIGHT WAY TO IMPROVE THE SCHEME FOR THE BENEFIT OF THOSE COUNTRIES WHICH NEEDED IT MOST.
THE PROBLEM SHOULD BE TACKLED DIRECTLY BY ALLOWING DUTY FREE
IMPORTS FROM THESE COUNTRIES WITHOUT LIMIT, THE FRENCH FOUND THE COMMISSION'S PROPOSALS VERY INTERESTING. THEY COULD GO ALONG WITH SUPPRESSION OF THE TARIFF QUOTAS FOR ALL BUT ONE OR TWO PRODUCTS
ON THE SENSITIVE LIST, THEY THOUGHT IT MIGHT BE POSSIBLE FOR THE
SPECIAL CUT OFF TO BE FIXED AT 15% RATHER THAN 10%. THE ITALIANS WERE IN FAVOUR OF THE COMMISSION'S PROPPSALS IN PRINCIPLE BUT THOUGHT THERE SHOULD BE ONLY ONE LEVEL OF CUT OFF IE 10 TO 15%.
THIS WOULD NOT CAUSE PROBLEMS FOR THE LESS DEVELOPED SINCE THEY
WERE IN VERY FEW CASES ABLE TO REACH THIS LEVEL OF EXPORTS
IN ANY CASE. IF THEY DID, SINCE REIMPOSITION OF DUTIES WOULD NOT
BE AUTOMATIC, IT COULD BE DECIDED ON AN AD HOC BASIS TO CONTINUE
DUTY FREE ENTRY FOR THEM. THE BELGIANS ALSO SUPPORTED THE PRINCIPLE
OF THE COMMISSION'S PROPOSALS BUT SUGGESTED THAT THE CUT OFFS
COULD BE 15 OR 28%. THE GERMANS FELT THAT THERE SHOULD BE NO
REDUCTION IN THE ADVANTAGES ALREADY GIVEN TO BENEFICIARIES: THEIR
QUOTAS SHOULD BE FROZEN AT EXISTING LEVELS. THE DANES SAW THE
COMMISSION'S PROPOSALS AS A PACKAGE: THEY MIGHT BE WILLING TO ACCEPT SPECIAL CUT OFFS IN ORDER TO GET RID OF TARIFF QUOTAS. THE
CUTCH WERE STRONGLY IN FAVOUR OF THE COMMISSION'S PROPOSALS BUT
WOULD HAVE LIKED TO SEE EVEN HARSHER TREATMENT FOR THE MORE
DEVELOPED. THE IRISH WERE GENERALLY IN FAVOUR BUT WERE WORRIED
ABOUT THE VOLUME OF TRADE WHICH MIGHT FLOW INTO THE IRISH MARKET
IF TARIFF QUOTAS WERE ABOLISHED. THEY SUPPORTED OUR PROPOSAL FOR
UNLIMITED DUTY FREE FOR THE LEAST DEVELOPED,
4. IN FURTHER DISCUSSION TRAN (COMMISSION) SAID THAT HONG KONG'S
MAIN AIM WAS TO AVOID DISCRIMINATION RATHER THAN TO OBTAIN
PREFERENCES. WE EXPLAINED THAT TO THE EXTENT THAT THIS WAS TRUE
AT ALL IT APPLIED TO TEXTILES ONLY, THE BRITISH GOVERNMENT COULD
NOT ACCEPT ANY WITHDRAWAL OF WHAT HAD BEEN AGREED FOR HONG KONG
DURING THE ENLARGEMENT NEGOTIATIONS. THE COMMISSION'S - PROPOSALS
WOULD RESULT IN THE REDUCTION BY SOME 60% OF HONG KONG'S PREFERENTIAL
TRADE. THE FRENCH SAID THAT THEY WERE INTERESTED IN FTHE GERMAN
IDEA OF FREEZING QUOTAS AT EXISTING LEVELS FOR THE MOST DEVELOPED.
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AGRICULTURAL PRODUCTS