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4. 1 SHALL RE-PHRASE SOME OF WHAT I SAID IN MY STATEMENT ON
RETURN HERE ABOUT PUTTING CUR VIEWS TO YOU AND THE UNDERTAKING
TO CONVEY THEM TO MINISTERS.
5. I HOPE THAT. I SHALL BE ABLE TO GO ON TO SAY THAT YOU ARE
SEEKING SOMETHING MORE THAN CONFIRMATION OF THE COMMISSION'S
PROPOSAL TO INCLUDE OUR FOOTWEAR, WHICH, THOUGH WE WILL WELCOME IT, WILL ASSIST ONLY A VERY SMALL SECTOR HERE. THE ONLY REAL
SUBSTANTIAL IMPROVEMENT FOR US WOULD BE SOME RELAXATION ON
TEXTILES. HOWEVER MUCH THE COMMISSION'S COMPROMISE PROPOSALS
IMPROVE THE SCHEME (FROM OUR POINT OF VIEW) THE FACT REMAINS
THAT UNLESS THERE ARE CHANGES ON FOOTWEAR AND TEXTILES WE
SHALL BE WORSE CFF IN 1975 THAN WE ARE IN 1974.
6. I HOPE WE MADE IT CLEAR IN LONDON THAT WE CANNOT SEE TRANSFER
FROM THE SENSITIVE LIST (1.E. IN PRACTICE THE ABANDONMENT OF THE
'KEY') AS IN ANY WAY BENEFICIAL TO THE INTERESTS OF ANY
BENEFICIARY THAT CAN ACTUALLY EXPORT WHAT THE E E C REQUIRES SO LONG AS THE SPECIAL BUTORS, FREEZING OF ACCESS, COLUMN 3 AND ALL
THAT GO WITH IT ARE ALSO INCLUDED. OUR EXPERIENCE SHOWS THAT THE
UNDER-UTILISATION OF TARIFF QUOTAS IS NOT (REPEAT NOT) DUE TO THE KEY: WE AND OTHERS HAVE EASILY REACHED BUTOIRS DESPITE IT.
AFTER ALL IN MANY CASES THE 'KEY' SHARE FOR SOME INDIVIDUAL
MEMBER STATES IS HIGHER THAN THE BUTOIR FOR THE COMMUNITY AS A
WHOLE. THE NEW DISCRIMINATORY ARRANGEMENTS WILL NOT LEAD TO
'EQUITABLE BENEFIT-SHARING AMONG PREFERENCE-RECEIVING COUNTRIES':
THAT DEPENDS ON ABILITY TO SUPPLY WHAT THE MARKET WANTS, THEY WILL
JUST REDUCE THE SHARE OF THOSE WHO CAN SUPPLY.
7. IN SHORT WE BELIEVE THAT THE 'LIBERALISATION IS AN ILLUSION.
THE ONLY BENEFICIARIES LIKELY TO HAVE THE ABILITY IN 1975 TO
TAKE ADVANTAGE OF IT ARE TO BE SINGLED OUT FOR RE-ADJUSTMENT''
BEFORE THE PROPOSALS COME INTO FORCE.
8. OR TO PUT THIS ANOTHER WAY: THESE PROPOSALS WILL RESULT IN
AN EVEN LOWER OVERALL UTILISATION OF TARIFF-QUOTAS IN 1975 THAN
IN 1974.
MACLEHOSE FILES:
HKIOD ()
SIR D. WATSON
EID
MR. MALE
TRED
MR. BUTLER
ECONOMISTS D MR. MARSHALL
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