TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 47

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3. IN REPLY I SAID THAT WE HAD OF COURSE NO SUCH INTENTION. I DREW

ATTENTION TO THE WORDING OF THE PRESIDENT'S STATEMENT WHICH HAD

MADE IT CLEAR THAT THE DECISION WAS ON THE BEST COURSE OF ACTION

AND HAD GONE ON TO REFER TO DISCUSSIONS WITH THE INTERESTED

GOVERNMENTS. MR. CROSLAND HAD ALSO MADE IT CLEAR THAT COTTON

TEXTILES WERE A SPECIAL CASE AND THAT NO PRECEDENT WOULD BE SET FOR

FURTHER DEPARTURE FROM OUR

TRADITIONAL POLICY ON COMMONWEALTH

TRADE IN ADVANCE OF ANY GENERAL CHANGE OF SYSTEM WHICH MIGHT BE

REQUIRED BY OUR ENTRY INTO THE EEC. 1 ALSO ALLUDED TO THE

EXCELLENT COMPETITIVE CAPACITY OF THE INDIAN TEXTILE INDUSTRY

AND THE FACT THAT THE ABOLITION OF A QUOTA MIGHT ENABLE THEM TO

INCREASE THEIR SALES. I SAID IT SEEMED TO ME THAT THE IMPACT OF

THE PROPOSED TARIFF ON INDIAN EXPORTS TO UK REQUIRED STUDY IN DEPTH

BEFORE POSITIVE CONCLUSIONS COULD BE DRAWN ONE WAY OR THE OTHER.

4 KAWAL SINGH STRESSED THAT INDIAN TEXTILE INDUSTRY WAS ONE OF

THE COUNTRY'S MOST IMPORTANT ONES EMPLOYING OVER A MILLION PEOPLE.

THE UK WAS ITS BEST CUSTOMER. IT WOULD UNDOUBTEDLY BE BADLY

AFFECTED AND THE ONLY QUESTION WAS HOW SERIOUSLY. IT WAS ONLY TO BE

EXPECTED IN SUCH A CASE THAT THE REACTION WOULD BE SEVERE. MINISTRY

OF FOREIGN TRADE REPRESENTATIVE ADDED THAT INDIA HAD EXERCISED

RESTRAINT IN HER TEXTILE EXPORTS TO THE UK AND THE PRESENT

TROUBLES OF THE UK TEXTILE INDUSTRY COULD NOT BE ATTRIBUTED TO HER..

INDIA WAS BEING PUNISHED FOR SOMEONE ELSE'S FAULT.

/5. I

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