TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 103

CONFIDENTIAL

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Mr. McKelvie

GENERALISED PREFERENCES IN UNCTAD

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I called on Mr. Kemmis in the Board of Trade on 22 January to discuss the present position on generalised preferences with particular reference to the stage reached as regards our own lists, consultation with the Commonwealth, and the position of the EEC as regards Hong Kong. The outcome was, I think, generally satisfactory, though less so as regards Hong Kong. In particular, Mr. Kemmis readily accepted the points I had to make about consultation with Commonwealth countries. It is a pity, however, that the Board of Trade take these matters to near- finality in the Board without bringing the FCO into the picture.

The U.K.Draft Offer

2. MAFF had at the beginning of this week produced a revised list of agricultural items which contained some changes from the list which they had produced about July of last year. It contained a number of items on which Australia and New Zealand had contractual preferences, such as canned fruit. This list had not been copied to other departments for the rather odd reason that the Board of Trade and MAFF wished to sort it out amongst themselves first. But Mr. Kemmis thought that because of the time factor the Board of Trade were likely to accept the MAFF list pretty well as it stood.

3. As regard industrial products, there had been conflicts of opinion within the Board of Trade which accounted for no list having yet been shown to other departments in whitehall. A submission was being made to the resident of the Board of Trade as regards textiles and footwear. I got the impression that the Industries Divisions of the

Board of Trade had been arguing for a restricted offer as regards textiles other than cotton textiles and on footwear, whereas CRE had been arguing for a more forthcoming offer in both cases. It has apparently always been intended that cotton textiles should be our exceptions lists, since oùr international behaviour as regards imports from l.d.c.s compared well with that of other countries and in any case the home industry could take no further competition from foreign suppliers.

4. The Board of Trade intended, as soon as the President's views were known, to table a paper in the F.C.O. Committee which would bring up-to-date UNC (68) 133 and describe the position at present reached, the nature of our intended offer, and the reasons for it. The paper would discuss Commonwealth consultation - see below.

CONFIDENTIAL

/Consultation