TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 55

CONFIDENTIAL

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DSR 11C

as textiles, while a reversal of our present stance in

other areas such as agriculture would be contrary to

wider British interests.

(c) Action in the UN. There may be political issues on which

individual LDCs are vulnerable to pressure in the UN

(d)

(for example, Indonesia and East Timor). But there will

be few cases where this represents a feasible option.

Quite apart from the importance we attach to demonstrating

patience and consistency in the conduct of our foreign

policy in the UN, we are unlikely to be able to isolate a

Third World country without causing others to close ranks

against us.

Blocking bilateral aid (though in most cases countries

that are willing to risk discrimination against the UK

will not be major recipients). In the short term, this

may have little effect since aid projects usually have

long gestation periods. In the longer run the impact on

the recipient can be severe. But the advantages would

have to be weighed carefully: delay in aid projects will

often result in money already spent being wasted.

(e) Action in the World Bank in the event of discrimination

against UK companies over individual projects.

(f) Legal action under IPPAS where possible.

(g)

Encouraging the promotion of multilateral investment

protection schemes. Previous attempts to establish multi-

lateral arrangements have foundered because of distrust on

the part of LDCs. But a recent revival of interest in

multilateral investment protection in the World Bank could

prove advantageous to the UK.