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3. IN REPLY I SAID THAT WE HAD OF COURSE NO SUCH INTENTION. I DREW
ATTENTION TO THE WORDING OF THE PRESIDENT'S STATEMENT WHICH HAD
MADE IT CLEAR THAT THE DECISION WAS ON THE BEST COURSE OF ACTION
AND HAD GONE ON TO REFER TO DISCUSSIONS WITH THE INTERESTED
GOVERNMENTS. MR. CROSLAND HAD ALSO MADE IT CLEAR THAT COTTON
TEXTILES WERE A SPECIAL CASE AND THAT NO PRECEDENT WOULD BE SET FOR
FURTHER DEPARTURE FROM OUR
TRADITIONAL POLICY ON COMMONWEALTH
TRADE IN ADVANCE OF ANY GENERAL CHANGE OF SYSTEM WHICH MIGHT BE
REQUIRED BY OUR ENTRY INTO THE EEC. 1 ALSO ALLUDED TO THE
EXCELLENT COMPETITIVE CAPACITY OF THE INDIAN TEXTILE INDUSTRY
AND THE FACT THAT THE ABOLITION OF A QUOTA MIGHT ENABLE THEM TO
INCREASE THEIR SALES. I SAID IT SEEMED TO ME THAT THE IMPACT OF
THE PROPOSED TARIFF ON INDIAN EXPORTS TO UK REQUIRED STUDY IN DEPTH
BEFORE POSITIVE CONCLUSIONS COULD BE DRAWN ONE WAY OR THE OTHER.
4 KAWAL SINGH STRESSED THAT INDIAN TEXTILE INDUSTRY WAS ONE OF
THE COUNTRY'S MOST IMPORTANT ONES EMPLOYING OVER A MILLION PEOPLE.
THE UK WAS ITS BEST CUSTOMER. IT WOULD UNDOUBTEDLY BE BADLY
AFFECTED AND THE ONLY QUESTION WAS HOW SERIOUSLY. IT WAS ONLY TO BE
EXPECTED IN SUCH A CASE THAT THE REACTION WOULD BE SEVERE. MINISTRY
OF FOREIGN TRADE REPRESENTATIVE ADDED THAT INDIA HAD EXERCISED
RESTRAINT IN HER TEXTILE EXPORTS TO THE UK AND THE PRESENT
TROUBLES OF THE UK TEXTILE INDUSTRY COULD NOT BE ATTRIBUTED TO HER..
INDIA WAS BEING PUNISHED FOR SOMEONE ELSE'S FAULT.
/5. I
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