Your 388, 389 Free Entry for Commonwealth goods into United
Kingdom.

Cabinet Sub-Committee does not favour any text of agreement which
could be applied as widely in modifying the obligations of the
Ottawa Agreement as that set out in your I.T.0. 389. It desires to
assist United Kingdom in overcoming her difficulties in regard to
the free entry of Commonwealth goods, but wishes to confine any
agreement to this specific point.

2. Further objections to the text are that the words 'sympathetic
consideration' in para (a) may be interpreted too liberally by the
United Kingdom and that in the case of some products we could well
have a likely future interest although not 'substantially
interested' at the 'material time' as in para (b).

3. To meet these objections the following alternative text is
suggested-

'In any case where the Government of the United Kingdom has an
obligation under the terms of the Ottawa Agreement to maintain
free entry into the United Kingdom for the products of any other
Commonwealth country and finds that it is impossible to continue
free entry for any particular product without serious prejudice to
its interests in that product it may raise with the other
Commonwealth Government or Governments concerned the question of
modifying its obligations to maintain free entry into the United
Kingdom to the extent necessary to avoid such prejudice. It is
understood
(a) That in any such case Commonwealth Governments enjoying rights
of free entry into the United Kingdom under Ottawa Agreements will
give consideration to any such representations and will have
regard to the difficulties confronting the United Kingdom
Government.

(b) That in any case where a Government enjoying rights does not
consider itself to be substantially interested in the export of
the product concerned to the United Kingdom consent to the
modification of the rights enjoyed under Ottawa Agreements shall
in general be granted.

(c) That in all other cases the Governments concerned shall
consult together with a view to agreeing upon an equitable
solution.'