SAINT VINCENT, THURSDAY, 1 FEBRUARY, 1951.-(No. 7). 41


comparatively few changes, thus making it a relatively simple matter to align the
Commission's recommendations with the United Nations List when it was
published. The United Nations Statistical Commission has now completed its
labours, "and its list, which is called -the: "Standard International Trade
Classificationn, was approved by :the Economic and Social Council in July.
Unfortunately it-represents rather more of a departure from the League of Nations.
" Minimum List" than the Commission had any reason to expect. His Majesty's
Government have not yet made known their views regarding a possible change-
over from the present classification used in the United Kingdom for primary
statistical purposes to the new "Standard International Trade Classification ".
(I might mention here that the Colonial Government Statisticians, at their
conference in March, were not able to consider the final draft of the United
Nations Classification as it was not available to them at that time; they did,
however, express the view that the extent to which such a classification was used
by the United Kingdom would influence colonial territories- see paragraph 24 of
the Report on the Conference, enclosed with my circular despatch of the 31st
August 1950). I am hopeful t hat a decision by His Majesty's Government will not
be long delayed, and I will communicate'it to you with my comments as soon as-
possible. Meanwhile, I am unable to give you anyguidance other than that His
Majesty's Government would hot favour the adoption at this date of the old
"Minimum List" for tariff or statistical purposes.
 6. The Commission's proposals for a common tariff (paragraphs 73 to 89),
particularly those relating to margins of preference, represent, in my opinion, a
reasonable balance in general conformity with the spirit of the General
Agreement on Tariffs and Trade. But you will be aware that, under Article XXIV
(7) of that Agreement (as amended--see' page 34 of Cmd. 8048 "Provisional
Consolidated Text of the General Agreement on Tariffs and Trade and Texts of
Related Documents ", copies of which were transmitted to Colonial Governments
under cover of my circular savingram of the 24th November, 1950), it is necessary
to submit any plan adopted for the establishment of a Customs Union to the
Contracting. Parties for their approval; and there is always the possibility that
they may ask for modifications.
 7. Paragraphs 17-19 of the Report deal with the question of free trade and
its effect on revenues. This aspect of customs union will need to receive very close
attention since the establishment of a free trade area. would result in a loss of'
revenue to each colony in respect to the duties hitherto collected on dutiable
goods imported from or exported to other member colonies. It is, however, to be
noted that the Commission consider that, while the loss could to some extent be
reduced by the levying of excise duties on the lines proposed in Chapter V of the
Report, and to a lesser extent by reserving to member colonies the right to
continue to levy export duties as indicated in Chapter VI, it would probably, in the
main, be more than met by the operation of a scientifically balanced common
external tariff.
 8. I do not propose at this stage to comment in any detail on the Draft Model
Customs Ordinance or the Draft Customs Regulations which form Appendices B
and C to the Report. There are, however, various points in them which would
require consideration, and I should, therefore, wish to be given an opportunity of
studying in draft any legislation which might be contemplated.
 9. 'In paragraphs 44 to 49 the Commission make various proposals for the
mechanical and centralised compilation of trade and revenue statistics, the-
adoption of which should effect considerable improvement on existing procedure.
Recent developments, however, bring a new possibility into consideration-that-
work on centralised mechanical tabulations could be shared between Jamaica and
Trinidad. As regards the statement in paragraph 49 that in regard to the form
in which statistical material when abstracted can best be presented,, the
Commission understands that the question is at present receiving consideration
by the Colonial Oifice ", it will be recalled that at the above-mentioned Conference
of Colonial Government Statisticians, it was agreed "that a. uniform layout of
Trade. Accounts was not essential at the present time, although some degree of
regional uniformity was desirable" (paragraph 26 of the Report of the
Conference).
 10. The Report is now to be considered by the Legislatures., I realise, of
course, the very substantial task they already have in hand in their examination
of the two other Reports mentioned in paragraph 2 above : but I hope that it will
be possible for them to address themselves to the study of this Report in the near
futui'e, and I shall await the outcome of. their deliberations with great interest.
The decision as to whether or not a customs union shall be established' rests
primarily with them; and His.Majesty's Government does tnot wish to prejudge
or influence their decision. The Legislatures may, find it convenient to confine
themselves for the time being to the consideration of the main issue, namely, the