CONFERENCE BUILDING; KENYAN, UGANDAN AND TANZANIAN DELEGATES AT CONFERENCE.




Initials JP/VS/PW/PC



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Background: THE COMMON MARKET AND THREE EAST AFRICAN STATES, WHICH ARE SEEKING AN AGREEMENT WITH IT, RESUMED NEGOTIATIONS IN BRUSSELS TODAY (MONDAY) AFTER A BREAK OF ALMOST A MONTH. DELEGATES FROM KENYA, UGANDA AND TANZANIA RETURNED TO THE NEGOTIATING TABLE AFTER SEEKING FURTHER INSTRUCTIONS FROM THEIR GOVERNMENTS.

THE TALKS WITH THE COMMON MARKET'S EXECUTIVE COMMISSION WERE SUSPENDED ON APRIL 30 AFTER THE TWO SIDES HAD FAILED TO AGREE AFTER A WEEK OF TALKS ON MUTUAL TRADE CONCESSIONS. THE EAST AFRICANS TOLD THE COMMISSION THAT THE LIST OF SOME 40 PRODUCTS - INCLUDING CARS, DAIRY PRODUCTS AND PAPER - ON WHICH IT WANTED TARIFF CONCESSIONS WAS TOO LONG. THEY COUNTERED WITH A LIST OF 26 PRODUCTS ON WHICH THEY WERE WILLING TO GRANT CONCESSIONS. BUT THE COMMISSION SAID THIS LIST WAS TOO SHORT. IN ANY CASE THE EAST AFRICAN'S LIST REPRESENTED ABOUT ONE PER CENT OF THEIR TOTAL IMPORTS FROM THE COMMON MARKET. THE COMMON MARKET OFFERED IN COMPLETE RETURN ABOLITION OF CUSTOMS DUTIES ON MOST IMPORTS FROM THE EAST AFRICANS EXCEPT COFFEE, CLOVES AND PINEAPPLES. THE LATEST ROUND OF TALKS MAY LAST FOR SEVERAL WEEKS.