TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 57

APPENDIX 'A'

The three main cases of trade discrimination ngainst be

Third Wot 14 no lon

Merc:-

Saudi Arabia

The film 'Death of a Princess', shown on televivion in

Britain in Spring 1980, gave offence both to the Saudi

ruling family and to public opinion generally in Saudi

Arabia. It was alleged to have given an unsympathetic

and inaccurate impression of life in that country. No public

statement that British goods and contracts were to be the

subject of an embargo was ever made by the Saudi government.

But contracting companies were told that British firms

were not acceptable for a number of major projects and could

not be put on tender lists. Saudi consumers appear also

to have reacted spontaneously to anti-British articles in the

Covernment-controlled press. For example, Rolls-Royce

Motors sold no cars in Saudi Arabia between April and

September 1980. Strength of feeling was such that King

Whaled postponed a state visit to London (which has not bien

officially announced).

Efforts to defuse the situation included a visit by

r Hurd to Saudi Arabia in July 1980. He discursed the i-age

of the two countries portrayed in their respective medin

The Secretary of State followed in August in order to

rettle differences and to demonstrate that relations were on

a sonder footing.

Normal trade relatiora domu chemare".

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