CONFIDENTIAL
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DSR 11C
trade policy in a more liberal direction. The FCO
should nonetheless ensure that the dangers of a hawkish
stand on trade issues affecting the NICs are understood
within Whitehall and that the lessons of the Indonesian
incident are well publicised outside. Any new threat of
discrimination against UK exports arising from irritation
over protectionist policies should be taken as a further
opportunity to press for less aggressive policies in those
areas such as textiles where pressure for import controls
is strong. In international economic negotiations of
interest to the IDC's (for example the MFA) we should aim
to stay in the middle of the EC/developed country pack.
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12. We should recognise that future public expenditure
cuts may give rise to problems similar to those created
by the recent increase in overseas dudent fees. An obvious
case in point is the proposal to charge foreigners with the
full cost of treatment under the National Health Service.
Some damage to British interests will probably be
unavoidable. But we should aim to mitigate this as far
as possible by explanation at an early stage and ensuring
that the implications are properly understood. Any
complacency in our relations with the richer developing
countries of the Commonwealth could carry a high political
and economic cost.
13. In countries where a single multinational corporation
or a small group of British-controlled multinationals have
a disproportionate stake in the economy, we should use
/our
CONFIDENTIAL