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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC_MAJESTY'S GOVERNMENT
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CONFIDENTIAL
C.P. (55) 176
"Copy No. 62
17th November, 1955
CABINET
IMPRESSIONS OF MY COMMONWEALTH TOUR
MEMORANDUM BY THE SECRETARY OF STATE FOR COMMONWEALTH RELATIONS
My colleagues have so much to read that I hesitate to add to the quantity. This is a short sketch of my main impressions of the Commonwealth countries I visited. I begin with India and Pakistan because it is there that the situation is most fluid and challenging.
Commonwealth Relations Office, S.W.1,
15th November, 1955.
H.
INDIA, PAKISTAN AND CEYLON
Before I left England representatives of British business operating in India and Pakistan expressed real apprehensions as to their ability to carry on. I tried to estimate how far their fears were justified.
2. All three countries are applying policies of nationalism which means, among other things, that they insist that an increasing number of the natives of the country must be employed in every business.
3. This must be accepted. So far the restrictions are not being applied onerously and I was assured by Ministers that all that they wanted was to be sure that foreign firms would give the bright boy the chance to work through to the highest posts.
4. It is difficult to quarrel with that if the practice is not extended too far beyond its present limits.
5. I could find no ill-will in Pakistan-I am more doubtful about Ceylon- towards British business and arrangements to accommodate their requirements seem to be reasonable.
6. In Pakistan there is an acute shortage of foreign exchange and that, coupled with widespread incompetence in administration, particularly in the issue of import licences, is continually leading to situations which are exasperating and mean real loss and hardship to industries. The Government are now very wisely going slow on new industrialisation and are concentrating resources on improving the situation of those industries which earn wealth from overseas. This will strengthen the country's economy. They are also reviewing the import licensing system. There are, too, good prospects ahead in Pakistan's development programme, but lately our prices have compared adversely with Germany and others who are making a real effort to get a footing in the country. By and large I thought that the business community with the constant help of the High Commission in ironing out frustration ought to be able to carry on.