TNAG-0134-FCO40-170-Tariff-preferences-for-developing-countries-1969 — Page 73

MTU 15/2

CONFIDENTIAL

TRADE POLICY DEPARTMENT

.. Stewart

hot a

Lanes duly-free quała system

(from which developing Commonwealth

consitives wd. be excluded) be much

4 June, 1969 more acceptable to Hong Kong than

UNCTAD Preferences:

existing proposals ?

5' sumppase

Size of the exception lists will be a crucial factor here.

U.K. Offer

the

65341469

You wrote to me on 23 April about the possibility that we might adopt the EFC technique of duty-free quotas when we come to

I have since seen modify our present illustrative offer.

John Slater's letter of 2 Mpy and your reply of 8 May.

2.

I certainly agree that it, is not too early to consider how our submission should be modified. I take John Slater's point that it might give an unfortunate impression if we were to retreat too

I doubt however quickly from our initial generous position. whether you intended this, and in any case it seems to me that we should not overrate our power to influence the position of the other major donors. In particular, the EEC are unlikely to be moved once they have agreed collectively on a particular policy. We must therefore assume that some restriction of our offer will eventually be necessary and aim to have a revised list ready for tabling at an

As the Scandinavian appropriate moment in the OECD discussions. countries may be thinking along the same lines it might be useful in due course to have an informal exchange of views with them

This could help before we actually tabled a revised submission.

This view

us to avoid any charge of deserting the liberal camp. of the likely course of the OECD discussions implies that the final scheme, if indeed one can be worked out, will not be nearly

The political as generous as the developing countries would like. advantages for the developed members of OECD are therefore likely to be small or even negative. In these circumstances perhaps our primary consideration should be our own interests, e.g. in Commonwealth markets.

As for the way in which our submission might be modified, we have, as I see it, at least three choices:

3.

(1) to substitute tariff cuts for our offer of

duty-free entry;

(2)

(3)

to retain unrestricted duty-free entry as the basis of our offer but to exclude a much larger number of products completely;

to adopt the EEC technique of duty-free quotas.

0. H. Kemmis, Esq., Board of Trade, Victoria Street · S.W.1.

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CONFIDENTIAL

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