TNAG-0135-FCO40-171-Tariff-preferences-for-developing-countries-1969 — Page 151

CONFIDENTIAL

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THE CHAIRMAN, summing up the discussion, said that in the agriculture sector the Committee agreed generally with the basis of the revised offer and authorised the Board of Trade and the Ministry of Agriculture to consult the Commonwealth developed countries and South Africa to ascertain their reactions. In the industrial sector it was clear that our original extremely generous offer had not been matched by other countries and that we could only submit it in the substantive documentation with a clear reservation that it would have to be reduced in scope unless, as was most unlikely, others improved theirs. On the question as to whether we should follow a duty quota or a tariff reduction with exceptions approach, our attitude for the present remained neutral and would be determined finally (together with the precise changes in our offer) in the light of detailed examination of the offers made by other donor countries; uniformity of system while desirable, was not essential and probably unobtainable. There was little we could do if, despite our arguments, other countries refused to accept Hong Kong as a developing country, but we should not rule out tho possibility of trying to get other Asian countries treated on the same basis as Hong Kong and of excluding certain products such as textiles from the preference arrangements if the EC were not prepared to open their markets to a significant extent. He would now arrange for the paper to be anonded to take account of the points made in discussion and submitted to the Ministerial Committee on Commercial Policy. The Board of Trado would, thereafter, inform the Confederation of British Industry and the chemical

industry of the line we intended to take.

The Committee

(1) Invited the Board of Trade and Ministry of Agriculture

to consult Cormonwealth developed countries on the scope of our revised agricultural offer.

(2) Took note that the Chairman would arrange for PC0(69) 18,

amended in the light of the discussion, to be submitted to the Ministerial Committee on Commercial Policy.

Cabinet Office, S.W.1.

9th September 1969

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CONFIDENTIAL