65° - 01.11.1969, Side 13

November 6 the ministers could therefore ap-
prove the terms and conditions which Iceland
had been offered. They are in brief the following:
1. Iceland will immediately upon accession have
duty-free access to the EFTA markets for all
products covered by the EFTA Convention.
2. Iceland will gradually in the course of 10
years abolish its protective duties on im-
ports from the EFTA countries of all com-
modities coming under the EFTA Conven-
tion. These are industrial products which are
also produced in Iceland. The duty reduction
will be in stages, 30% reduction at the time
of accession, but then a four year pause
whereupon duties will be reduced by 10%
annually from Jan. 1, 1974 to Jan. 1, 1980
when they will have been totally abolished.
3. The few remaining import restrictions in
Iceland will be abolished, some immediately,
but others not until 1975. The products
which will not be fully liberalized until 1975
are confectionary, beer, cement, fishing lines
and ropes, transformers and furniture. The
types of brushes made by the blind in Ice-
land will not have to be liberalized.
4. One important exception from the principle
of liberalization was agreed upon. Iceland
was permitted to maintain quantitative re-
strictions on petroleum products in order to
safeguard its trade with the Soviet Union,
which is an important market for Icelandic
frozen fish and salted herring.
5. Iceland’s membership is expected to become
effective on March 1, 1970 after Iceland and
the EFTA members have formally approved
the instrument of accession.
In addition to these results, the Icelandic Gov-
ernment reached agreements with the Nordic
countries on the establishment of a Nordic in-
dustrialization fund for Iceland and on facilities
for increasing the sale of Icelandic lamb to the
Nordic countries. Both of these are outstanding
examples of practical Nordic cooperation at its
best.
It is evident that Icelandic industry could not
meet the growing competition from abroad, nor
could it utilize the opportunity opened by the
duty-free access to the EFTA market of 100 mil-
lion people unless it received substantial capital,
technical assistance and favorable tax and duty
adjustments. The Nordic countries understand
this problem and through their good will and
constructive attitude agreed to contribute 14 mil-
lion dollars or 1232 million kronur in interest-
free capital to the foundation of an industrializa-
tion fund for Iceland. Of this amount Sweden
will contribute 5.4 million dollars and Denmark,
Finland and Norway 2.7 million dollars each, and
Iceland % million dollars. The capital will be
paid in 4 annual installments and will be repaid
in the years 1980—1995 after which time the
fund becomes Icelandic property. The fund should
not only strengthen existing industries, but also
encourage the establishment of new industries.
By so doing, it will widen the base of the economy
and make it more stable and viable. Thus, in-
dustrial development is a major goal in joining
EFTA.
In four separate agreements the Nordic coun-
tries have also agreed to permit imports of 1700
tons of lamb annually. This quantity is divided
between the countries as follows: Denmark 500
tons, Finland 100 tons, Norway 600 tons and
Sweden 500 tons. These agreements are expected
to increase the export earnings of the Icelandic
farmers in the years to come.
From the Icelandic point of view the outcome
of the negotiations are advantageous and grati-
fying. The EFTA members have taken full con-
sideration of Iceland’s essential interests and
special problems as far as possible under the
EFTA Convention. Still, in recent weeks debates
have taken place in Iceland about its membership
in EFTA. As the question has been further ex-
plained and better understood the forces in favor
of membership have been rapidly growing. It is
to be hoped that Iceland will have the same
experience as other EFTA countries — that the
opposition will slowly fade away when the bene-
fits of this cooperation start appearing.
Pingholtsstiaeti 27
Phone 24216
65 DEGREES
11