Your 363 and 365. Cabinet Sub Committee gave long and earnest consideration to latest United States offers and requests and to your views on them.
Sub Committee noted with satisfaction improved responses on beef, butter and other items and appreciated position with respect to tallow and tungsten. Reduction of apple duty in months May and June desirable if it can be obtained.
The requests for further reductions in preference we enjoy on dried and canned fruit items have presented difficult problems.
The Sub Committee decisions were (1) Raisins-It was not considered that the proposals regarding raisins in the United Kingdom and prunes in Canada offset the possible dangers which might be involved at a later date in a2cent reduction on raisins to Canada. The additional 6 pence sterling per cwt. in the United Kingdom was considered most desirable but not at the price of 1 cent (7 per ton) in Canada. It was decided to adhere to the existing 1 cent reduction offer.
(2) Canned fruits-It was decided not to go below the present offer of a reduction to 12 1/2 per cent preference in the United Kingdom on canned apricots, peaches and pears.
As regards New Zealand a reduction to 12 l/2 per cent on apricots, peaches and pears would be the lowest acceptable. While pears are weakest item in this market Minister confirms his view that it is not desirable to discriminate between these three fruits.
(3) Canned Fruit Salad-Although present preference in United Kingdom probably represents only about 6 1/2per cent ad val. on recent values, Ministers favoured its retention.