CONFIDENTIA

4

demonstration effect.

Mexico threatened similar

retaliation when it saw the weakner of the res

Command

Malaysia the UK's vulnerability to trade discrimi

DSR UC

Malaysia

6. A policy of discrimination against British bidders for

Malaysian public sector contracts was revealed by the Prime

Minister, Dr Mahathir, in October 1981. A degree of anti- British feeling had been expected, since Dr Mahathir believes,

among other things, that the British are responsible for

economic and social problems in Malaysia deriving from the

uncomfortable numerical balance between Malays and Chincue.

The specific factors that appear to have prompted trade

discrimination include:

The decision by Guthrie Corporation and Dunlop

Holdings to sell their Malaysian businesses to

Chinese interests without giving first refusal to

Bumiputra (indigenous Falay) buyers. This was gen

to cut across the government's objective of 505

ownership of the corporate sector by Bumiputras

by 1990.

The move by the Council for the Securities 14:06

to tighten up its rules on "dawn raids" after a

Kalaysan government-sponsored unit trust bad

launched a successful dawn raid on Guthrie.

:

This was only one of several instanceo

ven rise to criticien of ship movie

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