CONFIDENTIAL
A11
11.
The President proposes the grant to India of 220m. over five years. It is impossible to say whether or not
I the tariff proposal this would be reasonable compensation.
is to be pursued any add granted, however, cught unquestionably to be over and above present ceilings. Also, the grant of aid in these circumstances seons to set a dangerous precedent which other countries could seek to follow, both in thic context and in relation to other commodities in the future.
(Paras. 24 & 25 of 0(69)79).
12. The statement by Mr. Brown about our negotiating objectives in 1907 was published as a White Paper and is
The introduction of a public knowledge (para. 39 at B). tariff would remove the need to renegotiate transitional arrangements for cotton textilco for India and Palisten. It would also gravely weakon the case for a trade agreement
Thie by India and Pakistan with the enlarged Community. would have the advantago of removing one of our negotiating objectives. But we would be taking, in isolation from other aspects of our entry, an important decision on a publicly stated negotiating objective. Moreover, as the price of releasing us from cuz contractual comat tento India and Pakistan might ask us to take on other negotiating commitments. We would have to refuse to do this and face the political
consequences,
CONFIDENTIAL,
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