CONGRESS HALL; DELEGATES SEATED IN HALL; STUDYING DOCUMENTS; CONFERENCE IN PROGRESS.




Initials GL/VS/AS/BB



Script is copyright Reuters Limited. All rights reserved

Background: DELEGATES FROM 8 ASSOCIATED AFRICAN AND MALAGASY STATES MET IN BRUSSELS TODAY (26 MARCH) FOR URGENT DISCUSSION WITH FOREIGN MINISTERS OF THE SIX EUROPEAN COMMON MARKET COUNTRIES ABOUT THE TRADE AND AID AGREEMENT BETWEEN THEM.

THE PRESENT AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE AFRO-MALAGASY STATES WAS SIGNED IN YAOUNDE CAMEROUN, IN 1963. IT WAS FOR FIVE YEARS AND EXPIRES ON 31 MAY.

BUT SERIOUS DISAGREEMENTS ARE UNDERSTOOD TO EXIST BETWEEN THE COMMON MARKET COUNTRIES WHICH COULD DELAY THE RENEWAL OF THE CONVENTION. THESE COVER TWO MAIN ISSUES -- THE TRADE PREFERENCES WHICH THE AFRICAN COUNTRIES GRANT THE EUROPEANS FOR THE AIR INDUSTRIAL PRODUCTS, AND THE TARIFF REDUCTIONS THE SIX ALLOW FOR TROPICAL PRODUCE FROM AFRICA.

ON INDUSTRIAL GOODS FRANCE WANTS THE PREFERENCES TO BE MAINTAINED, WHILE THE NETHERLANDS WISHES TO ABOLISH THEM AND THE OTHER EUROPEANS TAKE COMPROMISE POSITIONS. ON TROPICAL GOODS THE EUROPEANS WANT TO APPLY REDUCED TARIFFS TO COUNTRIES OUTSIDE THE CONVENTION, AND ALSO DO TO AGREE ON THE SIZE OF THE REDUCTION ON THREE KEY PRODUCTS -- COFFEE, COCOA AND PALM OIL.

THE AFRO-MALAGASY STATES ARE ALSO PRESSING FOR A SUBSTANTIAL INCREASE IN THE AID THEY RECEIVE FROM THE SIX. THEY RECEIVED 330 MILLION STERLING (800 MILLION DOLLARS) BETWEEN 1964 AND 1969.