Submission No. 521-Eighth Session of the Contracting Parties to
G.A.T.T. [1]

Cabinet considered various issues which would arise at this
session and formulated directives to the delegates as follows:-

[matter omitted]

Admission of Japan to the G.A.T.T.:-

Cabinet decided on the following course of action with regard to
the admission of Japan to G.A.T.T.

Cabinet agreed that it could be made clear both locally and at the
session that the Australian Government regarded the G.A.T.T. as in
need of general revision. It was thought that the time of the
announcement of the delegation might provide a convenient
opportunity for stating this locally.

In addition, the delegation should support moves for amendment of
Articles 19 and 23 which would have the effect of permitting
discriminatory action more freely. It should also support the
United Kingdom application for modification of the no new
preference rule and present cases based on the dwindling value of
specific preferences and on the ban on new preferences in favour
of products of Papua and New Guinea as indicated earlier. Cabinet
was of opinion that to the extent that the agreement permitted
more discrimination and new preferences to be established, the
problems associated with Japanese accession would be reduced.

It was thought that the United Kingdom itself should be prepared
to take a lead on the matter of protection of United Kingdom
interests against Japanese competition in the Australian market.

The delegation was instructed to abstain from voting on the
question of Japan's accession to G.A.T.T. and to preserve the
Commonwealth Government's right to use Article 35.

The government has in mind that it might be possible at a later
stage to enter into bilateral negotiations with Japan which would
result in an agreement more advantageous to Australia than an
Australian concurrence to Japan's entry into the G.A.T.T. on terms
which would oblige Australia to give Japan m.f.n. treatment.

The above course of action is to be thoroughly canvassed at the
preliminary Commonwealth Conference in London. The action at
Geneva may depend on the extent of agreement which can be got in
London.

Cabinet indicated that Mr. Meere would be a suitable delegation
leader.