CYPHER/CAT A
PRIORITY DELHI
TELEGRAM NO. 1352
CONFIDENTIAL
NEUTRAL.
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
23 JULY 1969
88
ADDRESSED TO FCO TELEGRAM NO. 1352 OF 23 JULY, REPEATED PRIORITY TO RAWALPINDI, BOMBAY, CALCUTTA, AND MADRAS.
YOUR TELEGRAM NO. 849: COTTON TEXTILES.
ACCOMPANIED BY TURPIN, I CALLED SEPARATELY ON COELHO (MINISTRY OF EXTERNAL AFFAIRS) AND K.B. LALL (MINISTRY OF FOREIGN TRADE) DURING
LATE AFTERNOON OF 22 JULY AND GAVE THEM DRAFT TEXT OF STATEMENT BY
PRESIDENT OF BOARD OF TRADE. BOTH WERE GUARDED IN THEIR REACTIONS
AND RESERVED SUBSTANTIVE COMMENT UNTIL THEY HAD STUDIED THE
STATEMENT,
2. LALL HOWEVER MADE A NUMBER OF PREDICTABLE POINTS OFF-THE-CUFF.
HE EXPRESSED SURPRISE AT THE MOVE ON TARIFFS AND QUESTIONED WHETHER
DISCUSSIONS AFTER A DECISION IN PRINCIPLE HAD ALREADY BEEN TAKEN WOULD BE MEANINGFUL OR COULD AMOUNT TO MORE THAN AN EXAMINATION OF DETAILS WITHIN A FRAMEWORK LAID DOWN BY BRITAIN. BUT HE AGREED THAT
AT LEAST THERE WAS PLENTY OF TIME FOR INTERGOVERNMENTAL EXCHANGES
BEFORE THE TARIFF CAME INTO EFFECT. SECOND, HE FORESAW THAT MANY
LINES OF INDIAN TEXTILES WOULD NOT BE COMPETITIVE WITHOUT THE
PRESENT TARIFF MARGIN. THE PROVISION WHICH HAD BEEN MADE FOR
POSSIBLE ADJUSTMENTS UNDER THE AID PROGRAMME WAS THEREFORE LIKELY
TO BE NECESSARY. THIRDLY HE POINTED OUT THAT, AS HAD ALREADY
HAPPENED FOR JUTE PRODUCTS, PORTUGAL WOULD BE RECEIVING A
SUBSTANTIAL ADVANTAGE OVER INDIA AND OTHER COMMONWEALTH SUPPLIERS
IN THE BRITISH MARKET.
SIR M. JAMES
INTERNATIONAL TRADE DISTRIBUTION:
COMMODITIES DEPT.
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