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

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RECEIVED IN ARCHIVES No. 411 -3DEC 1968

FOREIGN AND COMMONWEALTH OFFICE,

(MT

MFC

LONDON, S.W.1.

2 December, 1968.

الشام

4

In your letter (2/10) of 14 October to Miss Vining you asked for an indication of the state of play on the UNCTAD scheme for generalised preferences for developing countries.

2. As you probably know, agreement was eventually reached at UNCTAD II on the principle of non-discriminatory and non-reciprocal preferences for the manufactures and semi-manufactures of developing countries but the task of working out the detailed arrangements was referred to a Special Committee on Preferences which is meeting from 29 November - 17 December this year and again in April next year. Membership of the Committee is open to all members of UNCTAD and the Jamaicans will no doubt have received an invitation to the first meeting.

3. We do not expect that much progress will be possible at this first meeting as the Western countries are not yet ready to put for- ward any detailed offers. All that has been agreed so far in OECD (where the Western position is co-ordinated) is that each country should prepare its own list of manufactures that it would want to see excluded from the scheme (or only included on certain conditions) and a list of processed agricultural products that it is prepared to see included. Once these lists are available (and they may be drawn up on quite different assumptions) the intention would be to work out a package acceptable to all OECD countries. This will not be easy and it is quite possible (although this should not be admitted to the Jamaicans) that no common Western position will be achieved by the time of the Special Committee's April meeting. One important factor will be the attitude of the new U.S. administration.

We, ourselves, are still discussing inter-departmentally the possible content of our own lists and we are, of course, keeping in mind the Commonwealth interest in particular products. For your own information we do not envisage any consultations with other Common- wealth Governments until our own position is clearer.

4. As far as Jamaica is concerned the important point about the generalised preference scheme is that primary products will not be included. The position of Jamaica's exports of sugar, bananas and fresh citrus in the British market would not therefore be affected. It is impossible to estimate the effect on other items of interest to Jamaica at this stage when we do not know what products will be covered or what depth of tariff cut will be agreed. The position on processed agricultural products is particularly unclear as the

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