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. [1]

[matter omitted]