(b) F.S. Kerr & Company of Bombay have made a similar proposal. (c) Rustom (mentioned above) wishes to open a fish-meal factory in Gwadur. 2. Last year two Japanese trawlers , ostensibly engaged as proposed at (a) above, were escorted to Karachi by a Pakistani naval ve sel and detained because it was alleged they had been fishing in Pakistani waters. 3. The Pakistan Government have been sounded informally by the United Kingdom High Commission in Karachi as to their attitude to these schemes, and are opposed to them because they fear they will result in 11legal fishing in Pakistani waters, and in Pakistani fish being diverted to the proposed fish-neal factory in Gwadur, and also because that factory woulă compete with similar factories to be erected in Pakistan, The fact that the fimm putting forward the second proposal has its headquarters in India is, in Pakistani eyes, a further point against it. 4. I do not think that we should stand in the way of what seems to be a promising project for the development of Cwadur. I would like therefore to give the Muscat Government the information about the firm for which they have asked and at the same time to tell /them
