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Item 3 - Transmission of Revised Proposals to UNCTAD
6.
Discussion on this was confined to item 3(a). The re was nothing under (b). This amounted to two drafting sessions in the course of which the original Secretariat draft was considerably slashed. The final result is not available, but I enclose an intermediate version.
Item 4
Exchange of Views on Certain Aspects
on
7. On this the greater part of the discussion was on (a) Safeguard mechanisms and (b) Consultation procedures, both of which there were Secretariat papers. There was little or no discussion on (c) Primary products and it seems fairly clear now that there will in the end be no joint agreed list of these products, let alone agreement on how they should be treated. As on so many other aspects, each donor seems likely to go its own way.
8. On Safeguard mechanisms the elaborate Secretariat draft received short shrift. Although the start of the discussion was not auspicious, and it looked as though it would go on for ever, it was soon sharply focussed by Leary (U.S.). Не pointed out that the U.S. at least would have their own procedures, i.e. the standard "escape clause" procedure (however it might emerge after the Trade Bill) and that this was how they would proceed. Any use of it would be on a non-discriminatory basis and they would report it to the OECD. The Canadians also indicated that their safeguard measures would be non-discriminatory, but the EEC made it clear that theirs' would be discriminatory. The EEC also indicated that escape clause action would be automatic on sensitive products when the duty quota ceilings were hit. They would report to CECD when sensitive ceilings were hit and also any changes in the list of sensitive products. Japan would do the same.
What it all came down to was that countries would report their actions and would be ready to consult in OECD.
9. Consultation procedures received similar treatment. It was agreed that OECD countries should stand firm in UNCTAD on the proposition that any multilateral consultations should take place at the annual review and that this should be within the Manufactures Committee of UNCTAD. Consultations in OECD among the donors could, of course, be more frequent.
10.
Finally, on rules of origin it was agreed that work on this could go on after the next meeting of the UNCTAD Special Committee but that the OECD Expert Group should meet again on 17 September. My feeling here is that once again in the end individual countries will apply their own rules of origin and that the attempt to find common rules will be dropped.
Item 5 - Preparation of the Report to the Trade Committee
11.
This item amounted to an even more tedious exercise in drafting which went on late into the evening of the final day. The result will not be available until the Trade Committee meets and I will forward it in due course.
Hong Kong
12.
I pursued my usual task of taking soundings in the corridors on prospects for Hong Kong. As time goes on, however, the job of persuasion is becoming more unrealistic as the decisions will be taken at a very much higher level.
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