CONFIDENTIAL
6. The Australian interest in the Kennedy Round is dealt with
in more detail elsewhere (Briefs G.3 and 4.11). As things
are shaping now, it seems that the main elements of a Kennedy
Round cereals agreement would be assurances on prices and on the
maintenance of self-sufficiency ratios both by importers and
exporters and provisions for food aid. According to latest
reports, the Australians attach the greatest importance to
obtaining the highest possible prices, and are less concerned
about assurances of access to markets.
7.
If a cereals agreement emerges from the Kennedy Round which
is satisfactory to Australia, we shall be able to argue with
justification that she will have assurances of markets in a
number of countries and that this should lessen her anxiety
about her access to the British market if we join E.E.C.
8.
So far, the Kennedy Round negotiations on cereals have
proved complex and difficult, and it is not possible to forecast
the outcome. Nor if the Australians should raise this point
is it possible to say what would happen if Britain entered
into commitments on cereals in the Kennedy Round and later faced
the prospect of undertaking conflicting commitments on entry into
the E.E.C. This is a situation which would have to be dealt with
as and when it arose.
(b)
Manufactured Goods
9. Our starting position was that free entry into Britain
should continue. The Six thought the common external tariff
should apply.
Provisional agreement was reached on the
application of the common external tariff in three stages
(decalage):
30%
on accession
30% in 1967
40% in 1970
/The
CONFIDENTIAL
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