COT VIDENTIAL
addition to the tazi?.
To impoco a tariff on oxports from Commonwealth countries would constitute a radical departure from the policy
of allowing duty free entry for practically all Commonwealth
exports to this country. It would be the first time for
It would many years that we had departed from this policy. be a major breach in the preferential system fron which wo,
as woll as our Commonwealth trading partners, benefit.
This important change in our import policy might provido a
precedent for the erosion of the system over a widening
area and perhaps to 1to ultimate dismantling with adverso
effects on our overseas trade interests.
5. The countries most severely affected would be "non-phito"
and it could be represented that we were taking action
against those developing Afro-Asian countries while leaving our comparatively affluent European partnera (1.e. Portugal
and the Irish Republic) unscathed.
6. We might well come under criticien on the grounde that
our action is incompatible with Part IV of the CATT (whi ch
contains special provisions designed to help the trade and developaent of the less developed countries) and with our
initiative in UNCEAD to cocuro tariff preferences on
manufacturos and semi-manufactures in favour of developing
countries.
CONREDITHRIAL,
No comments yet.
Private notes are available after approval.