EN CLAIR
HK files.
・U.K. Textile Tariff file.
PRIORITY
NEW DELHI .TO
TELNO 1702
12 SEPTEMBER 1969
UNCLASSIFIED
FOREIGN AND COMMONWEALTH OFFICE
13)
/NEUTRAL/
ADDRESSED TO FCO TELNO 1702 OF 12 SEPTEMBER, REPEATED FOR INFORMATION
TO BOMBAY.
M.1.P.T. FOLLOWING IS TEXT.
RECEIVED IN
REGISTRY No. 51
LAST
REC
130
BEGINS:-
16 SEP 1969
REF.
LONDON, SEPT 11:-
AICKY/540/8
THOUGH OFFICIAL TALKS BETWEEN INDIAAND BRITAIN ON IMPORTS OF COTTON TEXTILES TO THIS COUNTRY ARE EXPECTED SHORTLY, THE IR SCOPE WILL BE SEVERELY RESTRICTED.
THE BOARD OF TRADE REGARDS ITS UNILATERAL DECISION TO ABOLISH QUOTAS AS FINAL AND NOT NEGOTIABLE. BUT A SPOKESMAN ADMITTED THAT THERE WAS A CERTAIN AMOUNT OF FLEXIBILITY'' AS REGARDS THE IMPOSITION OF TARIFF DUTIES. INDIAN AS WELL AS PAKISTANI AND HONGKONG- EFFORTS WILL NO DOUBT BE DIRECTED AT KEEPING THES AS LOW AS POSSIBLE.
THE TEXTILE COUNCIL RECOMMENDED A TARIFF OF NOT LESS THAN 85% OF THE MCST FAVOURED NATION DUTY". THIS WORKS OUT TO 15% ON COTTON TEXTILES: 6 AND A HALF ON READY-MADE GARMENTS. ACCORDING TO A SPOKESMAN, THE PRESIDENT OF THE BOARD OF TRADE, MR ANTHONY CROSSLHND, HAS ACCEPTED THE PRINCIPAL OF A TARIFF WITHOUT COMMITTING HIMSELF TO ACTUALS RATES. THERE HAVE BEEN PROTESTS FROM THE INDIAN HIGH COMMISSIONER, WHO HAS CALLED SEVERAL TIMES AT THE BOARD OF TRADE, AND HAD DISCUSSIONS WITH THE INDIAN MINISTER (ECONOMIC), MR B. JAYAL. BUT THE BOARD IS NOW WAITING FOR THE THREE AFFECTED COUNTRIES TO MAKE SPECIFIC PROPOSALS.
IT IS EXTREMELY DOUBTFUL, HOWEVER, IF BRITAIN WILL ACCEPT ANY DRASTIC REDUCTIONS. THE FEELING HERE IS THAT THE ANGLO- INDIAN TRADE AGREEMENT OF 1939 WAS COUCHED IN VERY GENERAL TERMS AND HAS LITTLE RELEVANCE TO CONDITIONS IN 1969. LATER RENEWALS OF THE AGREEMENT AND THE BRITISH ASSURANCE THAT CONS- ULTATIONS WOULD PRECEDE ALL DECISIONS ARE NOT NOW REGARDED AS
BINDING.
/UNOFFICIALLY