CYPHER/CAT A

CONFIDENTIAL

INDIA

5

28

PRIORITY NEW DELHI TO FOREIGN AND COMMONWEALTH OFFICE

TELNO 138

CONFIDENTIAL

T

19 JUNE 1969

ADDRESSED TO FCO TELNO. 1138 OF 19 JUNE RPEATED TO RAWALPINDI

AND SAVING TO BOMBAY.

YOURTEL 714.

TEXTILE COUNCIL REPORT ON UK COTTON AND ALLIED TEXTILE INDUSTRY.

AS ALREADY REPORTED WE HAD PRELIMINARY REACTIONS FROM, AND EXCHANGES WITH, INDIAN GOVERNMENT AND TEXTILE INDUSTRY IMMEDIATELY

AFTER THE REPORT WAS PUBLISHED. PARAS 1 TO 3 OF RECORD OF UK/INDIA TRADE TALKS ON 1 APRIL AND TURPIN'S LETTER ECO 20/6

OF 18 APRIL TO TOMS IN BOARD OF TRADE REFER.

2. PARTLY NO DOUBT BECAUSE OF THESE EXCHANGES INDIAN REACTIONS (AFTER AN INITIAL FLURRY) HAVE SO FAR BEEN IN A LOW KEY. BUT I

HAVE NO DOUBT THAT IF IMPOSITION OF TARIFF WERE TO BECOME A LIVE

ISSUE, INDIAN REACTION BOTH THROUGH OFFICIAL CHANNELS AND THROUGH BRIEFING OF THE PRESS WOULD BE STRONG AND EMOTIONAL, THE MORE SO

BECAUSE TEXTILES ARE SUCH AN IMPORTANT ELEMENT IN INDIA'S EXPORTS

TO BRITAIN/ IN ADDITION INDIAN AUTHORITIES WOULD PROBABLY SEE IT

AS BEING TO THEIR POLITICAL ADVANTAGE TO TAKE THE LEAD AGAINST US

IN GATT AND UNCTAD ON BEHALF OF DEVELOPING COUNTRIES. ALL THIS COULD ENTAILA SUBSTANTIAL SETBACK TO OUR POLITICAL POSITION HERE.

RECEIVED IN

RCT YI.51

30 JUN 1969

NICKS/548/8

LAST

RET

25

NEXT

BEF.

13.

CONFIDENTIAL

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