TNAG-1117-FCO40-1391-Future-of-the-Dependent-Territories-1982 — Page 133

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CONFIDENTIAL

DSR 11C

major trading partners of most Commonwealth countries, who also

receive 75% of our bilateral aid. The knowledge and understanding

which many Commonwealth leaders and opinion formers have of us, as

a result of close educational and cultural links, and the

predisposition there often is to buy British, should give us an edge

over our political (mostly Eastern bloc) and commercial (mostly the

West and Japan) competitors, though we may not always take advantage

of it.

13.

On the other hand historical ties can generate complacency on

our part and unrealistic expectations on our Commonwealth partners'

(for example over students' fees) which can disguise, and prevent

both sides adjusting to, changing political and economic

realities, and delay the emergence of a co-operative relationship

based principally on mutual self-interest. When the crunch comes

it can, if delayed, be painful, as with Malaysia.

14. Our Commonwealth ties, (as distinct, once again, from the

Commonwealth organisation) have tended to hinder rather than help

our Community objectives. But our involvement with the Commonwealth,

and our knowledge of Commonwealth countries, adds some weight to our

political input into the Ten, and can be helpful vis a vis the

United States and other major powers, thus contributing to our

international standing.

CONFIDENTIAL

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