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(b)

(c)

(d)

We want the newly industrialised countries to "graduate" into

acceptance of the obligations as well as the rights of GATT membership.

These countries have reached a stage in economic development when they

can no longer expect one-sided concessions. They should be ready to

dismantle their own protective barriers and become full participants

in the open trading system. In the short term, the debt situation of

certain NIC's (and their consequent need to maximise export earnings)

may militate against liberalisation of market access, But the situation

may be somewhat easier by the time a new GATT Round gets underway, and

certainly by the time the results come to be implemented.

event the obstacles to greater NIC participation in GATT are as much

psychological and political as economic. The UK considers that as a

general rule special treatment under the GATT should now be reserved

for those countries which are genuinely "less developed".

In any

We would also like to see significant progress towards the liberalisation

of trade in agricultural products. It is in the UK's interest to keep

up external pressure on the EC's common agricultural policy.

We seek reduction in those industrial tariffs in the developed countries

which are still at levels inhibiting trade.

(e)

We should also use the new round to focus attention on the need for

Japan to reduce her growing trade surpluses by increasing her imports

of manufactured goods and liberalising her financial markets. The

latter, in particular, will help to ensure that the exchange rate

more nearly reflects market realities

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