Your T1. [1] We discussed the question of publication of United
Kingdom list with United Kingdom officials 20.3.47. We made the
following points-
(1) That list was very comprehensive and covered substantial part
of Australian tariff. Its publication would probably cause concern
in manufacturing circles and would be politically unwise unless
agreement affecting many of items listed was anticipated.

(2) It would be exceedingly difficult for us to conclude an
agreement with the United Kingdom covering all these items because
of the work involved in processing the requests.

(3) Furthermore since terms on which our goods were admitted to
United Kingdom were already very satisfactory from our point of
view it was difficult to see what United Kingdom could offer in
the way of tariff concessions which would justify reductions on so
wide a range of items as part of a 'mutually advantageous
agreement'.

(4) Reductions in British preferential rates would involve also
concessions to foreign countries for which we would receive no
compensation. This intensifies difficulty of reaching an agreement
satisfactory to Australia.

(5) We would in any case examine all items on which we have
received requests from foreign countries to see whether it was
practicable on these items to reduce British preferential rates.

These would cover very substantial number of items on which it
would be difficult for United Kingdom to provide an adequate quid
pro quo.

(6) It may well be in United Kingdom interest to rely for
remainder of items on procedure of examination by Tariff Board.

(7) It was suggested tentatively therefore that a possible basis
for a United Kingdom agreement might be-
(i) Reduction in British preferential rate on items on which we
have received requests from foreign countries.

(ii) An undertaking to have other items on which requests have
been received from United Kingdom examined by Tariff Board within
a specified time.

(iii) That these concessions should be balanced by whatever
concessions United Kingdom has to grant in its tariff and by
undertakings relating to agricultural policy, e.g. to avoid over-
expansion of production of grain, butter and other products of
direct interest to Australian export trade.

United Kingdom admitted many of these difficulties yet point out-
(1) That concessions they would be able to offer could include
concessions to United States or other foreign countries made to
enable us to obtain better treatment for wool, meat and other
items in which we are particularly interested.

(2) That concessions we make to Americans may well be largely at
United Kingdom expense rather than at expense of our own
manufacturers.

(3) That same reduction in Australian tariff generally may be
necessary to enable United Kingdom to retain pre-war volume of
trade with Australia because of changed position of Australian
manufacturing industries.

(4) That they would find it difficult to give undertakings of a
very precise character relating to agricultural policy and
consider that willingness to retain foreign duties on goods in
which we are interested where in their own interests they would
wish allow goods in free of duty does represent substantial
concession for which we should be prepared to pay.

(5) Reliance on Tariff Board procedure is unsatisfactory to United
Kingdom because criteria observed by Tariff Board are
unsatisfactory to United Kingdom.

It was generally agreed that it would be unwise to publish present
list of requests precipitately. United Kingdom have therefore
undertaken to go through list to eliminate-
(1) Items already covered or likely to be covered by requests from
foreign countries.

(2) Items in which there is danger that reduction in foreign duty
required by reduction in B.P.T. rate would mean that granting
United Kingdom request would give relative advantage to a foreign
competitor.

(3) Items of little importance.

(4) Items on which present supply position probably precludes any
great development of trade and which might therefore be dealt with
later.

(5) Items where reliance on Tariff Board procedure might be
acceptable to them.

They expect to have this review completed within a few days and it
should then be possible to judge whether lists could be published
without embarrassment. General question of whether an agreement is
possible between us can for the time being stand over pending
further investigation and discussion here with other Commonwealth
countries.