NEW DELHI TELNO 1385 TO FCO
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5.
(A) ''THE ELIMINATION OF THE CONTRACTUAL PREFERENCES
(B)
VI S-A-VIS EUROPEAN FREE TRADE AREA GOODS WILL NOT
INVOLVE THE LEVY OF DUTY ON INDIAN GOODS AT A RATE
HIGHER THAN THAT AT PRESENT APPLICABLE:
WHERE THERE IS A COMPETING INTEREST, THE U.K. WILL
ENSURE THAT IN MATTERS CONCERNING LEVY OF DUTY,
ETC., INDIAN GOODS ARE NOT PLACED AT A DISADVANTAGE
IN RELATION TO GOODS FROM THE EUROPEAN FREE TRADE
AREA. ''
IN SO FAR AS IT HAS BEEN POSSIBLE TO STUDY THE
STATEMENT MADE BY THE PRESIDENT OF THE BOARD OF TRADE,
IT APPEARS TO US THAT WHILE THE DEVELOPED COUNTRIES WHICH
ARE MEMBERS OF THE EFTA WOULD CONTINUE TO ENJOY A DUTY
FREE ENTRY AS WELL AS A PREFERENTIAL MARGIN OF 17 AND A HALF
PERCENT ON THEIR EXPORTS OF COTTON TEXTILES TO THE UNITED KINGDOM,
THE COMMONWEALTH COUNTRIES WHICH HAVE BEEN ENJOYING IDENTICAL
PRIVILEGES FOR A FAR LONGER PERIOD WILL LOSE THEM. THE MARGIN
OF PREFERENCE AVAILABLE TO HOMMONWEALTH WILL NOW BE A MERE
TWO AND A HALF PERCENT.
6. IN 1966 THE COMMONWEALTH TRADE MINISTERS REAFFIRMED
THE VALUE OF THE COMMONWEALTH PREFERENCE SYSTEM TO ALL
MEMBERS OF THE COMMONWEALTH, AND PARTICULARLY TO ITS LESS
DEVELOPED MEMBERS. THE DECISION OF THE BRITISH GOVERNMENT
GOES QUITE CONTRARY TO THIS RE-AFFIRMATION.
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/7. IN JANUARY