TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 95

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7.

IN JANUARY THIS YEAR, I HAD THE PRIVILEGE OF ACCOMPANYING OUR PRIME MINISTER TO ATTEND THE COMMONWEALTH

AFTER MUTUAL CONSULTATIONS,

PRIME MIMISTERS' CONFERENCE.

THE HEADS OF COMMONWEALTH GOVERNMENTS HAD AGREED, AND 1, NOW QUOTE FROM THE COMMUNIQUE ISSUED AFTER THE COMMONWEALTH PRIME MINISTERS' CONFERENCE THAT 'THERE WAS CONTINUING SCOPE FOR THE EXPANSION OF COMMONWEALTH TRADE AND FOR THIS PURPOSE THERE WAS A NEED TO STRENGTHEN THE WELL ESTABLISHED

THECOURSE WHICH LINKS AMONGST COMMONWEALTH MEMBERS.”

THE U.K. GOVERNMENT PROPOSE TO FOLLOW FROM JANUARY 1, 1972 IN INTRODUCING TARIFFS ON IMPORTS FROM THE

COMMONWEALTH PREFERENCE AREA WOULD WEAKEN AND NOT STRENGTHEN THE COMMONWEALTH LINKS AND WOULD ALSO ADVERSELY AFFECT A

MAJOR SECTOR OF THE EXPORT TRADE OF A DEVELOPING COMMONWEALTH

COUNTRY LIKE INDIA.

8.

THE PROPOSED STEP OF THE U.K, GOVERNMENT RUNS COUNTER TO THE PROVISIONS OF THE GENERAL AGREEMENT OF TARIFFS AND TRADE. ARTICLE XXXVII OF THE G A T T PROVIDES AN UNDERTAKING ON THE PART OF THE DEVELOPED CONTRACTING PARTIES TO REFRAIN FROM INTRODUCING, OR INCREASING THE INCIDENCE OF, CUSTOMS DUTIES OR NON-TARIFF IMPORT BARRIERS ON PRODUCTS CURRENTLY

OR POTENTIALLY OF PARTICULAR EXPORT INTEREST TO LESS-

DEVELOPED CONTRACTING PARTIES.''

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THE U.K. PROPOSAL ALSO CONSTITUTES A RETROGRADE STEP

IN THE VONTEXT OF RESOLUTION NO. 21(11) WHICH WAS UNANIMOUSLY ADOPTED IN UNCTAD 11 RECOGNISING THE CONSENSUS IN FAVOUR OF THE EARLY ESTABLISHMENT OF A MUTUALLY ACCEPTABLE SYSTEM OF GENERALISED, NON-RECIPROCAL AND NON-DISCRIMINATORY PREFERENCES WHICH WOULD BE BENEFICIAL TO THE DEVELOPING COUNTRIES.

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