TNAG-0134-FCO40-170-Tariff-preferences-for-developing-countries-1969 — Page 130

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reaffirmation of "political will" for the same reasons. A number of Group B countries, including the United Kingdom (Kemmis' statement enclosed) made individual statements including the necessary reference to "political will" which were reasonably well received. But it was clear that, for the time being at least, the United States was dragging its heels and the tone was really set by two U.3. statements (copies also enclosed).

4. The first of these statements merely repeated what Leary had said in OECD, namely, that the U.S. had not tabled lists in OECD, that the Administration was in the process of reviewing its trade policy, of which preferences formed a part, and that, pending the completion of this review, no definite statement of position could be made. The U.S. delegation waited until Thursday for instructions which would enable them to go a little further but, when these arrived, they did not add a great deal. To a specially summoned Plenary Session Brodie indicated that the President had authorised the preparation of lists for submission to OECD but spoiled this news by adding that "no final decision had been taken regarding participation in a temporary generalised scheme of preferences".

5. The situation was thus set for the wilder and more irresponsible of the developing countries to have a field day at the expense mainly of the Americans. The pack were being led by Allaf (Syria), the new spokesman of the 77, supported by a rollicking turn from Baffoe (Ghana). But the Chairman (Swaminathan) very soon saw that this sort of performance would be counter-productive and, by skilful Chairmanship, cut it short after Brodie had stuck to his guns and flatly refused to add to his prepared statement.

Mechanics

6.

and

The dissatisfaction of the Group of 77 on substance increased their insistence on getting something "positive" on machinery; and their demands were quickly formulated as:

(i) the creation of working groups on rules of origin and

on the institutional machinery for administering the scheme, which should start work immediately;

(ii) the establishment of a number of other working groups

to deal with different aspects of the scheme, which could be put to work before the Third Session, subject to documentation being provided either by the OECD or by the UNCTAD Secretariat, in accordance with an agreed consultation procedure involving the Secretary General and the Bureau of the Committee.

Of this, Group B, as agreed in Paris, was prepared to accept only the working group on rules of origin.

7.

True to UNCTAD practice the proceedings then reverted to a tedious series of Contact Groups and drafting parties which, inter alia, occupied the greater part of ednesday and Thursday, including the evening of the latter. Pradhan (India) and Brillantes (Philippines), obviously not wanting to rock the boat unduly, made considerable efforts to reach a compromise and they were helped in this by the Chairman and the new Secretary General (Perez Guierera). But Allaf (a far

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