TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 91

EN CLAIR

PRIORITY NEW DELHI

TELKO.1396

Bxhleterail File

TO FOREIGN AND COMMONWEALTH OFFICE

29 JULY, 1969

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UNCLASSIFIED

KY TEL NO 1335: COTTON TEXTILES

IN QUESTIONS FOLLOWING THE MINISTERS' STATEMENT

MEMBERS SUGGESTED RETALIATORY MEASURES INCLUDING TAKE OVER OF BRITISH CAFITAL INVESTMENTS IN INDIA, THE RUPTURE

OF TIES WITH THE COMMONWEALTH AND THE IMMEDIATE IMPOSITION OF A FIFTEEN PER CENT TARIFF ON

IMPORTS OF BRITISH CAPITAL GOODS.

2.

REPLYING THE MINISTER OF FOREIGN TRADE SAID THAT BEFORE TAKING RETALIATORY ACTION THE

GOVERNENT OF INDIA WOULD HAVE TO HOLD DISCUSSIONS WITH THE U.K. GOVERNMENT TO ''SET RIGHT THIS RETROGRADE STEP. AT THE MOMENT THEY WERE NOT THINKING IN TER'S OF RETALIATION. OPPORTUNITIES WOULD BE TAKEN TO DISCUSS THE QUESTION IN UNCTAD, GATT AND OTHER MULTILATERAL FORUMS. INDIA WOULD ALSO CONSULT OTHER COMMONWEALTH MEMBERS AFFECTED BY THE MEASURE.

SIR M. JAMES

INTERNATIONALTRADE DISTRIBUTION

COMMODITIES DEPT.

PICCRVED IN

R CISTRY No.51

30 JUL 1969

HKK 6/548/8

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