ANNEX C

JUNEAUNITIAL

DSR 11C

1.

Countries (excluding those that have already taken action

against the UK) in which Britain has a substantial stake

in terms of share of UK trade, value of direct investment,

and large contracts under way or in prospect, and where there

are obvious potential problems, include: -

Nigeria

annoyance over student fees, sensitivity

over Southern Africa. Has taken action

against British commercial interests

before (BP).

Zimbabwe

Negative potential in relations with UK

after initial euphoria. Sensitivity

over Southern Africa. Possible

textile problem.

Gulf Oil States

All big spenders, Arab-Israel sensitivity,

Iraq-Iran war, media problems, UK nationals

in trouble.

Libya

1

Low absorber, big spender, most

capricious of the oil producers. Rumoured

to have considered discriminatory action.

against the Four over participation

in the Sinai MFO.

Algeria

Recent increases in contracts, big

spender, has often put Third World

principle before economic interest.

CONFIDENTIAL

/Mexico

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