EN CLAIR
PRIORITY NEW DELHI
TELKO.1396
Bxhleterail File
TO FOREIGN AND COMMONWEALTH OFFICE
29 JULY, 1969
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UNCLASSIFIED
KY TEL NO 1335: COTTON TEXTILES
IN QUESTIONS FOLLOWING THE MINISTERS' STATEMENT
MEMBERS SUGGESTED RETALIATORY MEASURES INCLUDING TAKE OVER OF BRITISH CAFITAL INVESTMENTS IN INDIA, THE RUPTURE
OF TIES WITH THE COMMONWEALTH AND THE IMMEDIATE IMPOSITION OF A FIFTEEN PER CENT TARIFF ON
IMPORTS OF BRITISH CAPITAL GOODS.
2.
REPLYING THE MINISTER OF FOREIGN TRADE SAID THAT BEFORE TAKING RETALIATORY ACTION THE
GOVERNENT OF INDIA WOULD HAVE TO HOLD DISCUSSIONS WITH THE U.K. GOVERNMENT TO ''SET RIGHT THIS RETROGRADE STEP. AT THE MOMENT THEY WERE NOT THINKING IN TER'S OF RETALIATION. OPPORTUNITIES WOULD BE TAKEN TO DISCUSS THE QUESTION IN UNCTAD, GATT AND OTHER MULTILATERAL FORUMS. INDIA WOULD ALSO CONSULT OTHER COMMONWEALTH MEMBERS AFFECTED BY THE MEASURE.
SIR M. JAMES
INTERNATIONALTRADE DISTRIBUTION
COMMODITIES DEPT.
PICCRVED IN
R CISTRY No.51
30 JUL 1969
HKK 6/548/8
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