is the CET set at a level of 20 per cent and we have agreed to adjust this tariff over the transitional period. Both we and New Zealand consider that an acceptable volume of trade in New Zealand lamb will continue to flow over such a tariff. Forward estimates of production and consumption indicate that the United Kingdom in the enlarged Community will remain a substantial importer of New Zealand lamb. Both the United Kingdom and New Zealand are closely concerned with arrangements for sheepmeat following British entry, as the United Kingdom will be by far the major consumer of sheepmeat in an enlarged Community. The Government has therefore been able to express to the New Zealand Government its confidence that there will continue to be adequate and remunerative access for lamb from traditional sources of supply.
SUGAR
111. Our aim has been to obtain a firm assurance of a secure and continuing market in the enlarged Community on fair terms for the sugar exports of the developing countries which are members of the Commonwealth Sugar Agreement (CSA).
112. The Government's contractual obligations to buy agreed quantities of sugar under the CSA from all participants, including Australia, until the end of 1974 will be fulfilled and domestic beet sugar production will accordingly continue to be limited until then. Thereafter it has been agreed that the arrangements for sugar imports from developing Commonwealth sugar producers should be made within the framework of an association agreement or trading agreement with the enlarged Community.* It has further been agreed that the enlarged Community will have as its firm purpose the safeguarding of the interests of the developing countries concerned whose economies depend to a considerable extent on the export of primary products and in particular of sugar. After consultations held in London on 2-3 June 1971, this solution was accepted as satisfactory by the countries concerned on the basis of the following statement which has been placed on record with the Community:
"The Governments represented (United Kingdom, Antigua, Barbados, Fiji, Guyana, India, Jamaica, Kenya, Mauritius, Swaziland, Trinidad and Tobago, Uganda, St. Kitts-Nevis-Anguilla and British Honduras) expressed their satisfaction at the Community's readiness to offer the Governments concerned a choice of forms of association or a trading agreement; and also at the readiness to recognise the United Kingdom's contractual commitments to all the CSA member countries up to the end of 1974.
They noted that, in negotiations with the enlarged Community on association or trading agreements, it would be open to the Governments concerned to act individually or collectively. They further noted that the negotiations were due to be concluded by 1975, and that pending conclusion their existing patterns of trade with the United Kingdom would be maintained.
There was a full discussion of the Community's offer made on sugar after 1974. The British Delegation assured other delegations that the
* The arrangements for India are dealt with in paragraph 119.
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