‘Preferences Not Sacrosanct Now’

Press, Volume CIII, Issue 30396, 21 March 1964, Page 13

‘Preferences Not Sacrosanct Now’

(N.Z. Press Association— Copt/Hulu > LONDON, Muich 20. Coniinonwealth preferences on Ute British market were no longer reganletl us sucrosuncl, according to discussions in London by Commonwealth trade ministers, “The ’limes” special correspondent reported today.

The correspondent said the general view among African and Asian countries attending the ministerial talks was that alternative ideas based on extending preferences in all industrial countries to all developing countries were well worth study. Britain was fully prepared to support this line, on certain conditions. The ministers are holding informal talks in preparation for the United Nations conference on trade and development in Geneva next week.

The correspondent said the chief impression left by yesterday’s discussions was the determination that the conference must be a success from the viewpoint of meeting the needs of developing countries. Commonwealth countries

did not wish to sacrifice preferences without gaining something worthwhile in return. But they seemed to think they might well do this. The correspondent said thut Commonwealth countries did not appear to set much store by Common Market plans for preferences on a selected range of goods for selected countries. Higher Prices Wanted Another Important theme of yesterday’s talks was the keen ness of demands for higher prices for primary commodities. There seemed to he a good understanding of I lie risks Involved in depressing consumption of tropical products if they cost more, and of substitution by synthetics. The desire for higher prices was not confined to developing countries. Australia, as a great wheat producer, seemed likely to support French ideas for raising cereal prices. Australia, New Zealand and Canada regarded themselves as betwixt and between developed and developing countries. Although their living standards were high they were heavily dependent on export of primary products, said the correspondent. An authoritative source said that the Commonwealth ministers, who will end their talks today, wanted three key points to he given prominence at 1 lie Geneva conference. They were: (1) The vital need for higher commodity prices for primary producing countries. (2) The problem of access to markets of the industrialised nations. (3) The need to modify existing institutions dealing with international trade to take more account of the problems of developing countries. The President of the British Board of Trade (Mr Heath) is presiding over the Commonwealth meeting. The Commonwealth ministers will be going from London to Geneva during the week-end, while Mr Heath is expected to make a major policy speech at the United Nations conference on April 6.