CONFIDENT I AL
7
policies.
DSK 11C
as a result of increasing pressure in the UK for protectionist
Maintaining good relations with the NICs is an
important British interest, but it is not easy in recession to
shift trade policy in a more liberal direction. The FCO hould
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. In international economic negotiations of interest to
the LDCs (for example the MFA) our export interest is to stay
in the middle of the EC/developed country pack.
14. In the event of a further serious threat of discrimination
against UK exports we may need to reassess our general approach
to North-South issues. If the threat arose from irritation
this
over protectionist policies/should be taken as a further opport-
unity to press for moderate policies in those areas such as
textiles where pressure for import controls is strong. We
might also reconsider the case for seeking a revision of
Article 19 of the GATT, aimed at getting away from the source-
selective approach to safeguard protection.
15. We should recognise that future public expenditure cuts
may give rise to problems similar to those created by the
recent increase in overseas student fees. One example is the
decision to charge foreigners the full cost of treatment under
the National Health Service: overseas students could face heavy
medical bills which they may find difficult to meet. Any move
to prevent overseas students from seeking part-time or temporary
employment could also give rise to trouble. Our aim should be
to mitigate potential damage to British interests 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
No comments yet.
Private notes are available after approval.