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Initials KC/S/AW/LW



Script is copyright Reuters Limited. All rights reserved

Background: REPRESENTATIVES OF THE EUROPEAN FREE TRADE ASSOCIATION (EFTA) MET IN GENEVA, SWITZERLAND, TODAY (MONDAY) FOR A CRUCIAL "STOCK TAKING" SESSION FOLLOWING BRITAIN'S FAILURE TO JOIN THE EUROPEAN COMMON MARKET.

EFTA BRINGS TOGETHER 90 MILLION PEOPLE FROM SEVEN NATIONS - AUSTRIA, DENMARK, NORWAY, PORTUGAL, SWEDEN, SWITZERLAND AND BRITAIN.AN EIGHT COUNTRY - FINLAND - IS AN ASSOCIATE MEMBER.

BRITAIN, WHICH TOOK A LEADING HAND IN FORMING EFTA, IS REPRESENTED BY MR.EDWARD HEATH, WHO WAS ITS NEGOTIATING MINISTER IN THE COMMON MARKET TALKS, AND MR.FREDERICK ERROL, PRESIDENT OF THE BOARD OF TRADE (TRADE MINISTER).

BEFORE BRITAIN'S COMMON MARKET NEGOTIATIONS BROKE DOWN, MEMBERS OF EFTA HAD HOPED TO CREATE A SINGLE FREE MARKET IN EUROPE BY EACH BECOMING A MEMBER OR AN ASSOCIATE OF THE EUROPEAN ECONOMIC COMMUNITY.IT IS UNDERSTOOD THAT AUSTRIA IS STILL ANXIOUS TO BECOME AN ASSOCIATE OF THE COMMON MARKET, DESPITE BRITAIN'S FAILURE TO JOIN.

AT THEIR FIRST SESSION TODAY, EFTA MINISTERS DECIDED THAT THE PROGRAMME OF TARIFF CUTS SHOULD BE SPEEDED UP AND THAT THE ORGANISATION ITSELF MUST BE STRENGTHENED.HOWEVER, MAJOR DETAILS OF THE ASSOCIATION'S FUTURE POLICY REMAIN TO BE DECIDED AT THE FINAL MINISTERIAL COUNCIL SESSION TOMORROW (TUESDAY).

THE CHAIRMAN AT TODAY'S SESSION WAS MR.T.G.CORREA DE OLIVEIRA, PORTUGUESE MINISTER OF STATE.