CYPHER/CAT A
CONFIDENTIAL
RAWALPINDI TO FOREIGN AND COMMONWEALTH OFFICE
TELNO 555 23 JUNE 1969
PAKISTAN.
ED IN
YN 31
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CONFIDENTIAL
HICK6/560/8
ADDRESSED TO F C O TELEGRAM NO 555 OF 23 JUNE RFI TO DELHI
AND SAVING TO KARACHI
DACCA AND LAHORE..
YOUR TELEGRAM NO 714 TO NEW DELHI. U.K. IMPORTS OF COTTON TEXTILES.
THE REACTION OF PAKISTAN GOVERNMENT AND INDUSTRY TO IMPORT
DUTY WOULD UNDOUBTEDLY BE VERY UNFAVOURABLE. COTTON TEXTILE
MANUFACTURE IS ONE OF PAKISTANS LEADING INDUSTRIES AND ON
THE LATEST FIGURES AVAILABLE (1966/67) ACCOUNTS FOR 40%
OF HER FOREIGN EXCHANGE EARNINGS FROM MANUFACTURES OTHER THAN JUTE GOODS.
2. THE PAKISTAN GOVERNMENT TOOK A HARD LINE ON THE NE-
GOTIATIONS LEADING TO THE CURRENT QUOTA SYSTEM WHICH THEY
REPEATEDLY DENOUNCED AS ILLEGAL AND UNFAIR TO PAKISTAN.
I WOULD NOT EXPECT THEM TO BE COOPERATIVE OR FLEXIBLE ON
DISCUSSIONS OF A DUTY. SOME IDEA OF THEIR LIKELY ATTITUDE
MAY ALSO BE GAINED FROM THE ROBUST RESPONSE TO THE IMPORT
DEPOSIT SCHEME (SEE CORRESPONDENCE CONCLUDING WITH ERROCKS
LETTER 6/97 OF 20 MARCH TO WALKER).
3. THE CRITICAL ATTITUDE OF THE PAKISTAN TEXTILE INDUSTRY
WAS REFLECTED IN PRESS REPORTS AND COMMENT FOLLOWING PU-
LICATION OF TEXTILE COUNCILS REPORT IN WHICH THE OBJECTIONS
TO QUOTAS REFERRED TO IN PARAGRAPH 2(A) -(C) OF YOUR TELEGRAM
UNDER REFERENCE (EXCEPT OUR POSITION VIS-A-VIS THE UNITED
STATES) WERE RAISED. PARTICULAR STRESS WAS LAID ON THE
COMPETITIVE ADVANTAGES WHICH WOULD ACCRUE TO EFTA AND OTHER
EUROPEAN COUNTRIES AND THE PROPOSED DUTY WAS STATED FLATLY
TO BE A CONTRAVENTION OF THE COMMONWEALTH PREFERENCE SYSTEM.
CONFIDENTIAL
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