India Gives U.S. Imports Priority With British

Northern Advocate, 17 May 1947, Page 5

India Gives U.S. Imports Priority With British

(Received 11.15 a.m.) NEW DELHI, May 16. ARISING from Dr Dalton’s recent statement that Britain’s sterling-balance debts must be scaled down the Indian Government has sent a protest note announcing opposition to any scaling down of India’s £1,200,000,000.

The Note added that any decision regarding liquidation of balances must be as a result of consultation between the two Governments. Any other policy would be detrimental to good relations between India and Britain. The Commerce Department today announced a revision of India’s import policy to stop the flow into India of unessential consumer goods from sterling countries. The policy for the dollqr areas is not mentioned, although officials indicated last month that the same policy would apply to them. NOT AIL AFFECTED The revision becomes effective on July 1 and is expected to restrict imports to essential goods. All current import licences expire at the end of June.

The New Delhi radio said that the Indian Government’s decision applied to imports from Britain and other Em-, pire countries except Canada. Newfoundland and South Africa. The radio said that the Government had decided to cancel at once certain open general licences applicable to imports irom Ceylon, Portuguese possessions and any country contiguous to India’s land frontiers. The Government's withdrawal of open general licences will have the greatest effect on Britain. New Zealand and Australia, and will give United States experts to India equality with British exports. The new move will restrict the import of non.-essential consumer goods, but not capital goods, which arc defined as any plant worth at least £2OOO.