TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 135

TO PRODUCE AS MUCH OF OUR FOOD REQUIREMENTS AS WE CAN PROVIDE EFFICIENTLY AND ECONOMICALLY. TO DO THIS, HOWEVER, PRICES MUST RE DETERMINED WITH CLOSER REFERENCE TO THE COSTS OF THE MORE EFFICIENT PRODUCERS AND TO THE SUPPLY/DEMAND

SITUATION FOR PARTICULAR COMMODITIES. WE SHOULD AIM TO GEAR OUR POLICY TO THE MODERN FARM, ARE THE COMMISSION HAS ADVOCATED, IF THIS CREATES DIFFICULTY FOR SPECIAL GROUPS OF LESS VIABLE FARMERS, IT MAY BE NECESSARY TO CONSIDER SPECIAL PROVISION FOR THEM. INDEED SOME OF THEIR PROBLEMS MIGHT BE TACKLED BETTER IN THE CONTEXT OF SOCIAL AND REGIONAL POLICY. WE SHOULD ALSO BE MORE READY TO RECOGNISE IN PRESENT CIRCUMSTANCES THE DISPARITIES WHICH ACTUALLY EXIST BETWEEN MARKETS IN DIFFERENT PARTS OF THE COMMUNITY. FOR THIS REASON IT COULD BE USEFUL ON OCCASION AND FOR PARTICULAR CO POLITIES IF THERE WAS A RIGHT TO SEEK DIRECTLY A MEASURE OF DIAPERENTIAL PRICING WHICH IN PRACTICE CAN OCCUR AS THE INDIRECT EFFECT OF THE SYSTEMS OF COMPENSATORY AMOUNTS. THIS IS IST INTENDED TO BREAK THE PRINCIPLE OF COMMON PRICES: THE MIGHT WOULD BE EXERCISED SUBJECT TO THE NORMAL PROCEDURE FOR REACHING AGREEMENT DURING ANUAL PRICE DETERMINATIONS.

FOR THE BEST, A STRICTER PRICE POLICY WEEDS TO BE REINFORCED BY ERDOMEMENTS IN THE INTERVENTION AND LEVY MECHANISMS DESIGNED TO DI SCOUPLEC. COSTLY SUPPLUS PRODUCTION: BY A GREATER READINESS TO USE DIRECT PRODUCTION ARTEK TRE IT MAKES FINANCIAL AND ECONOMIC SENCE TO DO SO; AND BY STEP de (NAUXCELOANCIAL CONTROLS AND COSTING IN GENERAL.

RE

PRANEVENTS IN

ODITIES. HERE I AM ALL-THAT

STING OPERATIONS AND

2. NEXT, WE ARE CONCERNED & STCURE $ THE MARKETING REGIMES FOR COMERAJO THE COMMISSION TOO IS DISSATISFIED WE SHALL TAKE FULL ACCOUNT OF THE PROPOSALS IT WILL BE MAKING. BUT WE MUST ACT QUICKLY, ESPECIALLY MIRTHE BEEF SECTOR, IF BOTH PRODUCERS AND CONSUMERS ARE NOT TO SUFFER. IT IS NO SOLUTION SIMPLY TO INCREASE MARKET PRICES, ITH AN INEVITABLE DROP IN CONSUMPTION, BY FREEZING LARGE QUITTIES OF FRESH BEEF FOR INTERVENTION STORES. BUT A COMBINATION OF MEASURES, SUCH AS SLAUGHTER PREMIUMS RELATED TO REALONABLE MARKET PRICES, NATIONAL OR COMMUNITY PRODUCTION AIDS, AND REALISTIC IMPORT POLICY, WOULD REDUCE THE NEED FOR INTERVENTION TO MINIMUM.

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CONFIDENTIAL

3. FINALLY

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