*2-
IMPORTS, BUT WE BELIEVE IT HAS HAD A USEFUL RESTRAINING EFFECT AND
WILL CONTINUE TO DO SO. WE REALIZE OUR TRADING PARTNERS FEEL
CONCERN ABOUT THE SCHEME BUT WE BELIEVE IT HAS BEEN OF THE
ALTERNATIVES OPEN, THE WAY WHICH, WHILE HELPING US TO ACHIEVE OUR
AIMS. IS THE LEAST RESTRICTIVE TO TRADE.
(III) COMMONWEALTH POSITION.
IF ASKED WHETHER COMMONWEALTH AND DEVELOPING COUNTRIES WILL BE
EXEMPT FROM THE SCHEME YOU SHOULD SAY THAT THIS WOULD BE
DISCRIMINATORY AND UNACCEPTABLE IN THE GATT. BUT COMMONWEALTH
AND OTHER DEVELOPING COUNTRIES SUPPLY GOODS WHICH, FOR THE MOST PART
ARE NOT COVERED BY THE SCHEME.
(IV) EFTA AND GATT.
IF IT IS SUGGESTED THAT THE SCHEME IS A BREACH OF THE GATT AND
OF EFTA YOU SHOULD SAY THAT, AS WE HAVE MADE CLEAR, WE HAVE NO
DOUBTS THAT THE SCHEME IS COMPATIBLE WITH OUR OBLIGATIONS.
(V) I.M.F. ATTITUDE.
OUR CIRCUMSTANCES ARE MUCH MORE FAVOURABLE NOW THAN WHEN THE
SCHEME WAS INTRODUCED AND IT MAY BE SUGGESTED THAT THE IMF'S VIEWS
OF THE SCHEME WILL THEREFORE BE DIFFERENT. WE CANNOT ANTICIPATE
THE IMF'S VIEWS BUT WE HOPE THAT THEY WILL ACCEPT THE PURPOSE OF
THE SCHEME AND THE NEED FOR A GRADUAL PHASING CUT.
(VI) INTERNATIONAL CONFIDENCE.
WE WOULD NOT ACCEPT THAT TO CONTINUE THE SCHEME AT A LOWER
DEPOSIT RATE IS DAMAGING TO INTERNATION CONFIDENCE. IF THE SCHEME
HAD BEEN ABOLISHED, THERE WOULD HAVE BEEN AN EARLY REVERSAL OF ITS
EFFECTS: BY ABATING THE SCHEME, WE CAN LOOK TO A MORE GRADUAL
TAPERING OFF OF THOSE EFFECTS. WE BELIEVE THE WORLD WANTS AND NEEDS
}
/A STRONG
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