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MINUTES OF EVIDENCE TAKEN BEFORE
7 July 1982]
[Continued
was not sought. At a recent meeting of the BOTB's Area Advisory Group's Chairmen it was agreed that the Groups should at least be informed when the staff levels are being considered.
If this information is received early enough Groups could then offer their views on the levels proposed in relation to market potential based on their widespread experience.
ii) SEATAG considers that the level of commercial staff in some of the ASEAN markets is now inadequate related to market potential. We would welcome the opportunity of contributing a private sector view if any new consideration of this matter is possible.
2.4
International Lending Agencies
More could be done by industry and HMG to extract market information from the international lending agencies by improving liaison with World Bank, Asian Development Bank and others.
2.5 Export Credit Guarantee Department (ECGD)
SEATAG is appreciative of ECGD services generally and we are aware of the difficulty the Department sometimes encounters in securing reliable credit information from parts of South East Asia. This is an essential factor in setting the terms we can offer to individual customers and ECGD has welcomed a proposal from SEATAG for further discussion on this point.
2.6
Investment
i) SEATAG believes there is a need for Government and the private sector to put greater thought into identifying ways of assisting with the national development plans of ASEAN countries and in so doing to stimulate commercial opportunities for UK industry. A note of caution-too much obvious hard sell can sometimes be offensive.
ii) The appropriate level of technology for individual countries is worthy of special consideration.
2.7 Message of Change
Memories persist in high places of UK industry's indifferent performance 4-5 years ago. There is a need for us now to emphasise the message of change' and our new, competitive industrial capability and performance. This necessitates a more positive presentation of what we can do. UK representatives both in the public and private sectors should be prepared and encouraged to publicise success stories as evidence of a more competitive industry.
3 POSSIBLE NEGATIVE FACTORS
Whereas there is scope for the positive actions listed in Section 2, SEATAG believes there are also deterrent factors which discourage or inhibit UK firms in ASEAN markets. For example:-
3.1
Protectionism
There are sensitivities in South East Asia to protectionist attitudes which for example resulted in the textile dispute with Indonesia in 1980. SEATAG believes the spirited defence of declining UK industries may not always be wise because the resultant retaliation can have more serious long term damaging effects on the interests of other industries.
3.2
Counter-Trade
The practice of counter-trading will continue, and may well increase, as a factor in trade relations with developing countries such as those of ASEAN. SEATAG believes UK industry should not be deterred by counter-trade requirements such as those recently introduced by Indonesia, and try to meet them in a constructive and co-operative way.
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