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12
ORIGIN EB-07
INFO OCT-01 EUR-12 NEA-10 ISO-00 CIAE-00 COME-00 DODE-00
DOTE-00 FMC-01 INR-07 NSAE-00 SAL-01 CG-00 DLOS-06
OES-06 FTC-01 /052 R
DRAFTED BY EB/TCA/MA:CTAYLOR,JR.:BST
APPROVED BY EB/TCA/MA:CTAYLOR,JR.
MARAD:JHOEN (INFO)
FMC:TCHRISTENSEN (DRAFT)
NEA/INS:JGRAHAM
--------------------- 055582
R 041945Z OCT 76
FM SECSTATE WASHDC
TO AMEMBASSY NEW DELHI
AMCONSUL CALCUTTA
INFO AMEMBASSY LONDON
AMEMBASSY DACCA
AMCONSUL BOMBAY
AMEMBASSY COLOMBO
AMCONSUL MADRAS
AMEMBASSY ISLAMABAD
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LONDON FOR RICHARD K. 0ANK, IMCO COUNCIL DELEGATION
E.O. 11652: N/A
TAGS: EWWT, IN
SUBJECT: ALLEGED GOI DISCRIMINATION AGAINST US SHIPPING
LINES
REF: CALCUTTA 2445
1. DEPARTMENT SURPRISED BY REFTEL, SINCE DEPT. (EB/TCA/MA)
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HAS BEEN IN ALMOST WEEKLY CONTACT WITH AEL IN CONNECTION
WITH A NUMBER OF PROBLEMS, BUT IN NONE OF THESE RECENT
CONTACTS HAS ANY AEL OFFICIAL RAISED AEL'S PROBLEMS IN
INDIA. DEPARTMENT HAS EXCELLENT RELATIONS WITH AEL
PRESIDENT HORN AND OTHER SENIOR AEL OFFICERS INCLUDING
VICE PRESIDENTS BALLIN AND ANDINO. FURTHERMORE, AS REFTEL
NOTES, AEL HAS UNTIL RECENTLY BEEN INVOLVED IN TRYING TO
WORK OUT A POOLING ARRANGEMENT AND HAS NOT WISHED USG
INTERVENTION.
2. ON RECEIPT OF REFTEL, DEPT. CONTACTED AEL HEADQUARTERS
IN NEW YORK. SHORTLY THEREAFTER, DEPT. RECEIVED TELE-
PHONE CALL FROM BALLIN, WHO WAS IN GENOA, ITALY. BALLIN
CONFIRMED THAT AEL HAD NEVER COME TO THE DEPT. ABOUT ITS
INDIAN PROBLEMS AND EXPRESSED NO DISSATISFACTION WITH
SUPPORT HE HAS RECEIVED FROM THE DEPARTMENT. ALTHOUGH
SEEMINGLY LESS CONCERNED THAN LUDDY, BALLIN DID SAY
THAT THE INDIAN SITUATION, LIKE MANY OTHERS, IS A PROBLEM
FOR AEL AND THAT HE INTENDS TO DISCUSS IT WITH THE DEPT.
WHEN HE RETURNS TO THE U.S.
3. CLEAR-CUT CASE OF DISCRIMINATION AGAINST U.S.-FLAG
SHIPPING CAN BE ESTABLISHED IF:
A) DOMESTIC LAWS OR REGULATIONS EXIST, AND ARE BEING
IMPLEMENTED, WHICH DISADVANTAGE W.S.-FLAG SHIPS RELATIVE
TO INDIAN-FLAG AND/OR OTHER NON-U.S. FLAG VESSELS
(IMPLEMENTATION SHOULD BE EMPHASIZED SINCE MANY
COUNTRIES HAVE DISCRIMINATORY SHIPPING LAHS WHICH HAVE
NEVER BEEN EFFECTIVELY IMPLEMENTED AND THUS HAVE NO
PRACTICAL EFFECT); OR
B) REGULAR PRACTICES (E.G., REBATES, RESTRICTIVE CLAUSES
IN LETTERS OF CREDIT) EXIST, AND CAN BE DOCUMENTED,
WHICH DISADVANTAGE U.S.-FLAG SHIPS RELATIVE TO INDIAN
AND/OR OTHER NON-U.S. FLAG SHIPS.
4. IN PREPARATION FOR EXPECTED TALKS WITH AEL OFFICIALS,
DEPT. WOULD APPRECIATE ANY SUBSTANTIATING INFORMATION
EMBASSY AND CONGEN CAN SUPPLY CONCERNING PRACTICES
REFERRED TO IN REFTEL.
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5. SPECIFICALLY, PARA 1(A) OF REFTEL STATES THAT GOI TOLD
ALL ASSOCIATIONS OF EXPORTERS IN REGION THAT THEY MUST
SHIP ON INDIAN VESSELS. CAN EMBASSY OR CONGEN PROVIDE
TEXT OF DECREE, REGULATION, OR DIRECTIVE ISSUED BY GOI?
IF NO PUBLISHED DIRECTIVE EXISTS, IS THERE EVIDENCE THAT
GOI IS EFFECTIVELY REQUIRING EXPORTERS TO SHIP ON
INDIAN VESSELS?
6. AEL DIRECTOR GENERAL LUDDY'S "SUSPICION" THAT
INDIAN LINES ARE OFFERING RE0ATES ALSO NEEDS SUBSTANTIATION.
DEPT. WOULD APPRECIATE ANY EVIDENCE OR COMMENT EMBASSY OR
CONGEN CAN PROVIDE WHICH WOULD CLARIFY AEL'S SUSPICION. IN
FUTURE CONVERSATIONS WITH AEL REPRESENTATIVES, EMBASSY
AND CONGEN OFFICERS SHOULD STRESS THAT WHILE REBATING IS
OF CONCERN TO USG (ESPECIALLY TO FEDERAL MARITIME
COMMISSION), HARD (PREFERABLY DOCUMENTARY) EVIDENCE 'OULD
NORMALLY BE REQUIRED FOR USG TO TAKE ACTION IN SUPPORT OF
AEL.
7/. ALTHOUGH CENTRAL BOOKING OFFICE DESCRIBED IN PARA
1(B) OF REFTEL APPEARS FAR FROM REALIZATION, DEPT. WOULD
APPRECIATE ANY ADDITIONAL INFORMATION, SUCH AS PRESS
CLIPPINGS, WHICH MIGHT SHED FURTHER LIGHT ON LIKELIHOOD
OF IMPLEMENTATION, TIMETABLE, AND REAL PURPOSE OF OFFICE.
KISSINGER
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