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the EEC appear to find it possible to contemplate a duty-free
quota scheme. The Australians already operate a duty-quota
system and it would be worth asking how the Australiano
managed since they face many of the administrative difficulties
that we do.
4. From the point of view of our external relations a duty-
free quota system is more attractivo then a nystem of tariff
eats. The points to be made are as follows i
(1) a short and apparently simple offer with the
minimum of exceptions sould have presentational
advantages in UNCTAD and the benefits to developing
countries, though limited, would be widely spread ;
(2) in the longer term there are obvious political and
practical advantages in adepting a policy which would
not need to be changed substantially in the event of
our membership of the EEC;
(3) more immediately it could provide a general
reassurance to Commonwealth suppliers, both
developed and developing, about their position
in our market and so help to discourage action
by them to diminish our own preferential advantages.
In particular, developing members of the Commonwealth
would be given something to offset the limited duty-
free access offered to them by the EEC.
Tariff Chia
5.
Although we can not object in principle to a system of
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/tariff
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