TNAG-0005-FCO40-41-Departmental-briefs-about-Hong-Kong-1968 — Page 85

CONFIDENTIAL

that in the long term she is unlikely to

control any united India, will she work for

(or sit back and await) a disintegrated India,

in some of the successor states of which she

might reasonably hope for more effective

influence ? An Asian Albania in Keralà ? The

scope, in many directions, for Chinese

disruption of stable Indian development is

great

encouragement of trouble between

India and the external border states (such as

Nepal) and the internal border tribes (such

Me

as Nagas), encouragement of the pro-Peking

'A

Indian Communists, stocking-up the Indo/

Bakistan dispute;

in general, distracting

Indian energies and resources from the major

task of inteɓnal development.

43. For both India and Pakistan that

development is reaching a critical stage; both

are reasonably near to achieving agricultural

"break-through", making them self-sufficient

in food. The use of new food grains and

fertilizers has made this a possibility in

Pakistan in the next couple of years and in

India a few years later. The result of success

could

would be that more foreign exchange be

devoted to industrial development. The long

term market in both countries for consumer

goods is already well recognised in the Western

trading countries; how significant will this

market become in the '70s ?

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/44.

The

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