U.K. BID TO HELP DENMARK ON BUTTER

Press, Volume CII, Issue 30109, 18 April 1963, Page 9

U.K. BID TO HELP DENMARK ON BUTTER

‘Commonwealth Asked To Waive Preference’

(ftjt Press Association— Copyright)

LONDON, April 17.

British-Danish talks, resuming today, on Denmark’s bid to increase her sales of butter and other farm produce in Britain had run into a major snag, the “Financial Times” said today.

The newspaper said editorially that the British Government seemed to have suggested to the Commonwealth countries that they might waive the preference rights which Denmark was trying to overcome to gain freer access to the British market.

Not all the Commonwealth replies were in yet, but so far they all appeared to have been “dusty answers.”

The “Financial Times” said the Danes sought duty - free access for four products —butter, cheese, boned beef and tinned ham. Butter was the key point.

Having been told by the British that a raising of their butter quota at the expense of other suppliers was out of the question, the Danes were able to argue that if quotas were to be retained anyway the reduction of the tariff would hurt no-one but the Exchequer. There would be a loss of revenue of £1.5 million sterling, but market prices—and this was what the other suppliers must be primarily interested in—would remain unaffected. For the British Government though, the problem, had not turned out to be quite as simple as that, said the “Financial Times.” The 15s per cwt duty was a preference which was “bound” to a num-

ber of Commonwealth and former Commonwealth countries—New Zealand, Australia. South Africa, and Eire among them. This meant the Danes could only be given duty-free access if these countries agreed to waive their contractual preferences, or alternatively if the British Government made concessions to them in exchange for the preference. Since under conditions of import control, there was no direct financial benefit from the preference—and quite clearly import controls would exist for a long time to come —the British Government did seem to have simply suggested to the Commonwealth countries that they might waive their rights, said the “Financial Times.”

The “Financial Times” said: “Not all the replies are in yet. but so far they all appear to have been ‘dusty answers.’

“New Zealand as the main supplier is naturally concerned at being asked to surrender a preference covering more than half their exports

which do enter Britain on favoured terms. “None of the countries concerned are willing to give up their rights without even a negotiation for something in return. “The trouble, though, is that the British Government is working on a tight schedule. In just over three weeks, the E.F.T.A. Ministerial Council is due to meet again in Lisbon. “It was hoped that this meeting would finally agree on the tariff acceleration timetable. It is clearly impracticable to conduct a full series of trade negotiations with a number of Commonwealth countries, South Africa and Ireland before that date. “Unless these countries show themselves more flexible than

they have done hitherto, there is clearly no chance of meet-

ing Denmark’s wishes at the Lisbon meeting,” said the “Financial Times.” “Yet it is clearly desirable that these wishes should be met as far as possible, for E.F.T.A. solidarity would be an asset to this country (Britain) —not least in the Kennedy G.A.T.T. round,” it said.