CONFIDENTIAL
8
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DSR 1C
Commonwealth could carry a high political and economic cost.
16. In countries where a single multinational corporation or
a small group of British-controlled multinationals have a
disproprotionate stake in the economy (as in Papua New Guinea
or Malaysia), we should use our influence to encourage sensitive
and sensible behaviour. There will, however, be occasions
when the interests of firms and their shareholders conflict
with the general British interests.
We should then ensure that
the government understands that we have exercised what influence
we can, but that our power is limited to persuasion. With
other bodies beyond the reach of the British government, the
most we can do is to anticipate intelligently and to educate
IDCs about the limits of our influence over private bodies and
individuals.
17.
Personalities may be very important in dealing with LDCs.
Our missions should ensure that both the FCO and home department
grasp the value that Third World leaders and ministers attach
to protocol and to demonstrations of respect. Insensitivity on
the part of civil service negotiatiors on civil aviation (a
particularly delicate subject with LDCs), North-South and trade
matters can also damage wider UK interests. Missions should
ensure that individual negotiators are aware of the dangers.
We should not hesitate to ask Home Departments concerned to
consider removing persistent offenders from positions where they
can expose the UK to the hostility of LDCs.
Conciliatory measures threats, sanctions
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18. Where trade discrimination against the UK is the result of
a single, unpredictable incident, conciliation may be the most
appropriate course of action. If the problem arises from a more
fundamental deterioration in relations, this response will not
be adequate and we may need to look at
need to look at a combination of