COFIDENTIAL
Tran said that the sensitive lists had been compiled on the basis of items in which there were quantitative restrictions on imports from developing countries in at least one member state of the Community. To this had been added items where Hong Kong was the principle supplier of the Community.
He then went on to say that the new list superseded the old ones and we should work on that from now on. It was, nevertheless, still a working hypothesis and no more than a basis on which further tentative calculations would be made. The Commission would not attempt to draw up a final proposal for presentation to the Council until they had seen the American lists and were able to make a close com arisen of what they involved. He would, however, be glad to receive any comments we might have
•n the new list and the figures included therein. The list as revised new contains both sensitive and semi-sensitive products and the final determination of the sensitive list would, as stated above, not be made until later.
Beneficiary Countries
6. I next asked what the Community's thinking now was on beneficiary countries. Tran replied that this was again not yet finally determined but thinking was now veering towards including the "77" and dependent territories plus perhaps one or two marginal countries like Israel. The reason for the inclusion of Israel would be that this would be in substitution for negotiating a "commercial arrangement" with her. Of the other "marginal" countries Greece and Turkey were already associated, Spain would probably be excluded, if only on political grounds and so also would Portugal, partly because she was not included in the Australian scheme.
Information on Hong Kong
7. Tran then said that it would help him if he could be given more information on Hong Kong which he might be able to
CONFIDENTIAL
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