RESTRICTED
7. THERE WAS A SHORT DISCUSSION OF THE DUTCH PROPOSAL FOR THE
TROLICAL OILS. HOWEVER THIS WAS SUSPENDED WHEN IT EMERGED THAT
SEVERAL DELEGATIONS DID NOT HAVE INSTRUCTIONS. THE COMMISSION
CPPOSED THE PROPOSAL FOR ZERO DUTY ON PALM OIL.
8. WE ASKED THE CHAIRMAN'S ADVICE ON WHETHER THE. INDIAN SPECIALITY
PRODUCTS COULD BEST BE DEALT WITH UNDER THE GSP OR BY TARIFF
SUSPENSIONS. WE SAID WE UNDERSTOOD THAT THE TECHNICAL CUSTOMS
PROBLEMS COULD NOW BE RESOLVED. THE CHAIRMAN HOPED WE WOULD PURSUE
THIS IN THE TARIFF SUSPENSION CONTEXT. WE TOOK NOTE.
INDUSTRIAL PRODUCTS.
9. THE GROUP WENT THROUGH PRODUCTS ON THE CURRENT SENSITIVE LIST OF 47 PRODUCTS (EXCLUDING ECSC PRODUCTS) AND CONSIDERED WHETHER
THE COMMISSION'S PROPOSALS FOR THE REDUCTION OF THE LIST TO 7
COULD BE ACCEPTED. THE RESULT OF THIS EXERCISE, WITH NUMEROUS RESERVES FROM THE ITALIANS, BELGIANS AND FRENCH AND SOME FROM THE
DUTCH, IRISH AND GERMANS WAS THAT RESERVES WERE PLACED ON THE
TRANSFER TO THE SEMI-SENSITIVE LIST OF SOME 37 PRODUCTS. IN SOME
CASES THE ITALIANS WERE PREPARED TO ACCEPT TRANSFER TO THE SEMI-
SENSITIVE LIST PROVIDED THAT THE SPECIAL BUTOIR TO BE APPLIED WAS
MORE RESTRICTIVE THAN PROPOSED. WE AND THE GERMANS OPPOSED THIS
SOLUTION ON THE GROUNDS THAT THERE SHOULD BE NO REDUCTIONS IN THE
BENEFITS AVAILABLE TO BENEFICIARY COUNTRIES. AT THE END OF THE DAY TRAN (COMMISSION) SAID THAT HE WAS VERY DISSATISFIED WITH THE
WAY THE DISCUSSIONS HAD GONE. HE INDICATED SOME WILLINGNESS ON
THE PART OF THE COMMISSION TO FOREGO THE COMMUNITY RESERVE IF
THIS CONCESSION WOULD ENABLE MEMBER STATES TO AGREE TO THE REDUCTION
OF THE SENSITIVE LIST TO SAY 15 PRODUCTS. WE EMPHASISED THE IMPORT-
ANCE OF FINDING SOLUTIONS WHICH WOULD TAKE ACCOUNT OF THE INTERESTS
OF HONG KONG.
10. ON FINISHED LEATHER (4102B) THE DANES PROPOSED THAT SIMPLY
TANNED LEATHERS FALLING UNDER THIS TARIFF HEADING SHOULD BE INCLUDED
IN THE GSP ON THE SEMI-SENSITIVE LIST. WE SUPPORTED THIS AND
POINTED OUT THAT THESE COULD NOT BE CONSIDERED BASIC PRODUCTS
SINCE THEY HAD UNDERGONE SUBSTANTIAL PROCESSING. THERE WAS HOWEVER
OPPOSITION BY SEVERAL DELEGATIONS.
/11.THERE
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