KARACHI, Pakistan, March 22—Urgent pressure for a settlement of differences between East and West Pakistan—even if broad autonomy must be granted to the East—is coming from industrialists in Karachi and Lahore, the two big manufacturing centers of Pakistan.
The reason is that manufacturers and traders in the West have been hit particularly hard by the suspension of trade between East and West ordered by the Awami League, which actually rules In the East.
The East is the biggest single export market for the West's products. Business circles say that 40 per cent of the output of manufacturers in the West— cloth, yarn, drugs, metal products, shoes, cement and processed foods—is sold in the East. The proportion is higher in the case of textiles. Sales in the East are assured by protective tariffs and exchange controls. A long‐standing complaint in the East is that this tariff and controls system maintains in efficient, high‐cost industries in the West that would not be able to sell their goods in competitive markets outside Pakistan.
Finding Markets a Problem
Thus industries in the West not only find their outlets in East Pakistan cut off but also see the development of alter native markets as a long slow process of salesmanship and cost‐cutting.
Moreover, payments due from the East on past sales have been blocked and this is a blow to some enterprises.
Organizations of industrialists here and in Lahore have petitioned the military Government of President Aga Mohammad Yahya Khan to accept the demands of the East, citing the dire effects on the West's economy of the loss of a market estimated to be worth tens of millions of dollars a year if this is not done.
Petitions have said some factories will soon come to standstill if a settlement permitting normal trade is not made.
Freeing of Payments Sought
An immediate objective of entrepreneurs in the West is to obtain blocked payments from the East estimated to be worth $33‐million.
The East is also losing its export earnings to the West under present conditions, but the value of these is less than half the total of the West's sales in the East.
In some respects the loss of the East's exports, is proving hard for Westerners to endure. Practically all the West's betel leaves, which most Pakistanis like to chew in a refreshing, slightly narcotic mixture with lime and spices, come from the East. None is arriving these, days and prices for remaining stocks are soaring.
Most of Pakistan's newsprint is made in the East and the stoppage of supplies has caused newspapers in the West to cut down in size.