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4. THE PAKISTAN GOVT REACTION IS THEREFORE LIKELY TO BE EVEN
MORE EXPLOSIVE THAN FORECAST IN MY TEL 555. TO SOFTEN THE BLOW
1 SHALL NEED TO RECEIVE URGENTLY, I E BEFORE REPORTS OF THE STATEMENT
IN PARLIAMENT REACH PAKISTAN 2
(1) AN EXPLANATION OF THE SIGNIFICANCE OF THE FORMULA **85% OF THE M F N RATE'' TO DESCRIBE THE 15% DUTY. WHAT RATE WILL EFT A COUNTRIES ENJOY UNDER THE NEW REGIME? THE ANGLO/PAKISTAN TRADE AGREEMENT OF APRIL, 1951, CONTAINS AN M F N CLAUSE (ARTICLE IV) OF WHICH WE WOULD PRESUMABLY BE IN BREACH IF EFTA COUNTRIES CONTINUED TO ENJOY DUTY-FREE ENTRY AND PAKISTAN DID NOT:
11) FIGURES ON PAKISTAN COMPETITIVE SHOWING UNDER GLOBAL QUOTAS (REQUESTED IN PARAGRAPH 5 OF MARSHALL'S LETTER 5/12 OF 8 JULY
TO WALKER):
111) MATERIAL LIKELY TO BE CONVINCING TO THE PAKISTANIS SHOWING WHY INDIA HAS BEEN SINGLED OUT FOR COMPENSATORY AID.
(IV) YOUR COMMENTS ON PARA 2 AND 3 ABOVE.
MR. TWIST
INTERNATIONAL TRADE DISTRIBUTION:
COMMODITIES DEPT.
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