CYPHER/CAT A

IMMEDIATE NEW DELHI

TELEGRAM NUMBER 1495

CONFIDENTIAL.

CONFIDENTIAL

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TO FOREIGN AND COMMONWEALTH CFFICE

11 AUGUST 1969

RECEIV

IN

IR...

5 |

18 AUT 1969

HKK6/500/f

ناکات و

ADDRESSED TO F.C.0. TELEGRAM NO. 1495 OF 11 AUGUST REPEATED FOR

INFORMATION TO RAWALPINDI AND BOMBAY,

MY TEL NO 1489: COTTON TEXTILES.

LAST

REF.

123

REA)

REF.

125

I WAS SUMMONED TO SEE KEWAL SINGH SECRETARY EXTERNAL AFFAIRS AT

SHORT NOTICE THIS EVENING 11 AUGUST. HE HAD BEEN ASKED BY MINISTERS DO

EXPRESS THEIR MOST SERIOUS CONCERN AT PROPOSED TARIFF WHICH HAD

AROUSED VERY STRONG FEELINGS IN PARLIAMENT AND OUTSIDE. THE POINTS

ON WHICH THERE WAS PARTICULAR INDIGNATION WERE THE ABSENCE OF

CONSULTATION, THE PREFERENTIAL TREATMENT FOR EFTA COUNTRIES

ESPECIALLY PORTUGAL, THE SCANT REGARD PAID TO A HISTORICAL

ASSOCIATION, AND THAT THE PROSPECT OF AID WAS BEING HELD OUT AS IF

IT WERE A SOLUTION TO WHAT WAS ESSENTIALLY A TRADE PROBLEM. I WAS

ASKED IN PARTICULAR TO CONVEY TO THE PRESIDENT OF THE BOARD OF TRADE

THAT IT WAS FELT THAT OUR ACTION AMOUNTED TO AN ABRUPT DEPARTURE

FROM THE CLOSE AND FRIENDLY RELATIONSHIP WHICH HAD EXISTED HITHERTO

BETWEEN BRITAIN AND INDIA IN THE FIELD OF TRADE.

2. THE REPRESENTATIVE OF THE MINISTRY OF FOREIGN TRADE WHO WAS

PRESENT DREV ATTENTION TO THE FACT THAT BEFORE THE CREATION OF

EFTA A VERY HIGH POWERED UK DELEGATION HAD VISITED INDIA TO

NEGOTIATE THE VARIATION OF THE 1939 TRADE AGREEMENT. DID WE NOW

INTEND TO DENOUNCE THIS AGREEMENT?

13. IN

CONFIDENTIAL

1

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