APPENDIX 'A'
CONFIDENTIAL
DSR 11C
The three main cases of trade discrimination against the
UK by Third World countries over the past two years
have been these: -
Saudi Arabia
1. The film 'Death of a Princess', shown on television
in Britain in Spring 1980, gave offence both to the Saudi
ruling family and to public opinion generally in Saudi Arabia.
It was alleged to have given an unsympathetic and inaccurate
impression of life in that country. No public statement
that British goods and contracts were to be the subject of an
embargo was ever made by the Saudi government. But contracting
companies were told that British firms were not acceptable
for a number of major projects and could not be put on tender
lists. Saudi consumers appear also to have reacted
spontaneously to anti-British articles in the government-
controlled press. For example, Rolls-Royce Motors sold no
cars in Saudi Arabia between April and September 1980.
Strength of feeling was such that King Khaled postponed
a state visit to London (which had not been officially
announced).
2. Efforts to defuse the situation included a visit by
Mr Hurd to Saudi Arabia in July 1980. He discussed the
image of the two countries portrayed in their respective
media. The Secretary of State followed in August in order
to settle differences and to demonstrate that relations
were on a sounder footing.
Normal trade relations resumed
thereafter.
13.
CONFIDENTIAL