PRIORITY
CYPHER CAT A
FM F C O 271645 Z
LAST
REF.
RESTRICTED
REF.
RESTRICTED
(HKK 6/548/3)
NEUTRAL
TO PRIORITY GOVERNOR HONG KONG TELNO 408 OF 27 MAY.
ANGLO/INDIAN TRADE AGREEMENT OF 1939.
1. AS HAS ALREADY BEEN ANNOUNCED, WITH EFFECT FROM 1 JANUARY 1972 THE PRESENT PROTECTION OF THE BRITISH COTTON TEXTILE INDUSTRY BY
QUOTA CONTROL WILL BE REPLACED BY A TARIFF ON IMPORTS FROM THE
COMMONWEALTH PREFERENCE AREA.
2. THE PROPOSED TARIFF IS IN CONFLICT WITH THE ABOVE-MENTIONED
AGREEMENT. IN DECEMBER 1970 WE ASKED THE INDIAN GOVERNMENT TO GRANT
1S A WAIVER FROM OUR OBLIGATIONS TO ENABLE US TO IMPLEMENT THIS
POLICY, THE INDIANS HAVE STILL NOT AGREED TO DO THIS. IF THEY DO
NOT DO SO BRITAIN WILL BE FACED WITH NEED TO TERMINATE THE AGREE-
MENT. THIS AGREEMENT (COPY FOLLOWS BY BAG) IMPOSES OBLIGATIONS
ON THE UNITED KINGDOM AND ON INDIA AS REGARDS THE DEPENDENT
TERRITORIES WHICH UNDER ARTICLE 8 ARE OBLIGED TO ACCORD INDIA ANY
PREFERENCES WHICH MAY FOR THE TIME BEING BE ACCORDED TO QUOTE
ANY OTHER PART OF THE BRITISH EMPIRE UNQUOTE. UNDER ARTICLE 11
INDIA UNDERTAKES TO ACCORD TO DEPENDENT TERRITORIES GOODS
PREFERENCES, IN SOME CASES 10 PER CENT ON SPECIFIED GOODS, AND
UNDER ARTICLE 12 TO GIVE TREATMENT TO ANY GOODS NOT LESS FAVOURABLE
HAN ON THOSE OF ANY FOREIGN COUNTRY.
3. AS IT IS NECESSARY FOR BRITAIN TO GIVE 6 MONTHS' NOTICE OF
TERMINATION (IF THIS PROVES ENVENTUALLY TO BE NECESSARY) WE
SHOULD BE GRATEFUL TO KNOW, BY 19 JUNE AT THE LATEST, WHETHER TERMINATION, WHICH WOULD BE EFFECTIVE IN RESPECT OF THE DEPENDENT
TERRITORIES AND ASSOCIATED STATES, WOULD LEAD TO ANY SPECIAL
DIFFICULTIES FOR HONG KONG.
DOUGLAS-HOME
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES D
HKQ
NNNNN
RESTRICTED
5
RECIVED IN REGISTRY No. 51
- Jon 1971
AKR6/540/3
1