CONFIDENTIAL

2

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"THE RIGHT COURSE IS TO INTRODUCE ETC. THERE WAS NO

INCOMPATIBILITY BETWEEN THIS STATEMENT AND MR. CROSLAND'S

SUBSEQUENT STATEMENT THAT HE WOULD NOW INITIATE DISCUSSIONS WITH

THE COMMONWEALTH GOVERNMENTS CONCERNED.

4. MINISTRY OF FOREIGN TRADE SAID THAT THEY WERE VERY WORRIED

ABOUT THIS ISSUE, WHICH IN THE LOK SABHA PRESENT EXCITABLE

MOOD COULD LEAD TO SERIOUS TROUBLE. THEY REQUESTED AN EARLY

WRITTEN ASSURANCE THAT IT WAS OUR INTENTION IN THE FORTHCOMING

CONSULTATIONS TO DISCUSS THE PRINCIPLE OF THE PROPOSED TARIFF

AND NOT MERELY THE DETAILS OF ITS IMPLEMENTATION.

5. I HAVE NO DOUBT THAT INDIAN PUBLIC OPINION IS SERIOUSLY

DISTURBED ON THIS ISSUE WHICH

TAKEN TOGETHER WITH CURRENT PRESS

COMMENT ON THE DUNCAN REPORT AND ON OUR PROPOSED ENTRY INTO THE

COMMON MARKET, IS REGARDED AS EVIDENCE THAT WE ARE TURNING OUR

BACKS ON THE COMMONWEALTH. WHILE INDIAN MINISTERS HAVE SO FAR

REACTED WITH REASONABLE RESTRAINT, THERE SEEMS TO BE A REAL,

DANGER THAT THEY MAY BE FORCED INTO PUBLIC DECLARATIONS ABOUT

RETALIATORY MEASURES FROM WHICH THEY WOULD LATER FIND IT DIFFICULT

TO WITHDRAW.

6. AS SEEN FROM HERE, IT SEEMS NECESSARY ON BOTH PRESENTATIONAL

AND LEGAL GROUNDS TO DEMONSTRATE THAT WE ARE READY TO HAVE

GENUINE CONSULTATIONS WITH THE GOVERNMENT OF INDIA ON THIS ISSUE

(1.E. AS DEFINED IN PARAGRAPH 4 ABOVE). I THEREFORE STRONGLY

ADVISE THAT I SHOULD BE AUTHORISED TO GIVE THE INDIANS AN ASSURANCE

TO THIS EFFECT, IN AS CATEGORICAL TERMS AS POSSIBLE. IT WOULD BE

HELPFUL TO HAVE THE EXACT FORM OF WORDS THAT I MAY USE, BEARING

CONFIDENTIAL

/IN MIND

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