TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 49

CONFIDENTIAL

5

-

DSR 11C

trade issues such as textiles it tends to align itself with the

more protectionist members of the Community such as France and

Italy. The colonial past can still give rise to resentment.

Conversely, after the Zimbabwe settlement, too much may be

expected of us in the resolution of other disputes, with

consequently greater reaction when we cannot deliver. Where

retaliation is sought against a Western veto in the Security

on

Council issues which arouse strong feelings in the Third World;

we may be perceived as the most vulnerable target. In addition,

the UK media enjoy a wider circulation around the world than

the non-anglophone media and may thus give wider offence when

Third World countries and leaders are criticised.

10. By contrast, France's determinedly protectionist leanings

in agriculture and its colonial past appear to have been less

troublesome, in the present context. The FRG, which adopts a

conspicously liberal approach on trade issues, does not appear

to have suffered at all. It is noteworthy that the FRG's

approach to issues on which LDCs are sensitive often differs

markedly than our own. While, for example, it shares many of th

UK's doubts over the 6th International Tin Agreement a subject

of special concern to Malaysia and Indonesia which have already

discriminated against UK exports the FRG has been content to

let the UK argue the case against the agreement in the EC.

While the US shares some of the UK's disadvantages, most notably

―

―

a hard line on North-South issues, it can afford to adopt a

hawkish line, not least because it is prefac 20 and

willing to retaliate if provoked.*

*

While this paper is concerned primarily with trade discrimin- ation by LDCs, it should be noted in passing that developed countries may cause problems for the UK. For example, Australia has recently considered taking retaliatory trade sanctions against the EC because of objections to the workings of the Common Agricultural Policy. Since the UK has far closc trade links with Australia than any other member of the Community, such action could in practice arount to discrimin- ation against the UK.