TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 121

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the scope of the three regulations, The Commission were now being pressed by the member states for proposals to harmonise their trade relations with Eastern Europe, This was all very well and the Commission would produce proposals; but it took time to make such proposals and in any case it was very doubtful whether they would get a sympathetic response when they were produced. He agreed that the recent announcement of France's intention to negotiate a new commercial agreement with the U.S.S.R. covering a five year period up to 1974 was hardly a good omen. He said that it was too soon yet to comment the juridical aspects of this intention but he thought the implications could be very serious, The transitional period was notyet finished and the Treaty stated that it could be prolonged by the unanimous decision of the Council acting on the proposal of the Commission; but this prolongation (which was, in any case, highly unlikely) could only run for a further three years, thus falling short of the date mentioned in the French statement. It looked therefore as if the French intention would be contrary to the provisions of the Treaty.

8.

Export credits

on

Finally, in reply to a question, Ernst said that the Commission would be trying to make progress, on the basis of Article 112, towards the harmonisation of aids to exports. He felt that they had got almost as far as possible on the basis of consultation and that they must now move to a joint policy. He did not think that the Commission would insist on a

centralised handling of export credits but that they would have to propose some central clearing house; and that they would now wish to come forward with formal proposals covering the whole range of export credit policies. But he made it clear that this field would get less priority than the others mentioned above and he did not expect much progress to be made until 1970. Meanwhile the Community would have to carry on with the existing consultation procedures.

(D. Hannay)

J. Ingram, Esq.,

Board of Trade,

1, Victoria Street,

LONDON.

Copy to R. Abbott, Esq., UKMis., GENEVA.

P.W. Ridley, Esq., WASHINGTON.

R.G. 'Giddens, Esq., Trade Policy Dept., F.C.o.

M.Morland, Esq., E.E.I.D., F.C.c.

Commercial Departments, British Embassies, BOT,

ROME, THE HAGUE, PARIS, BRUSSELS, LUXEMBOURG and TOKYO.

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