TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 70

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SUBJECT: TRADE DISCRIMINATION AGAINST THE UK

Introduction

1. In recent years, Britain has been subjected to several

unexpected threats of discrimination against its exports

by Third World countries. The most striking instances

(see Annex 'A') have concerned Saudi Arabia, Indonesia

and Malaysia. This paper looks at the nature of the

threat and considers the following questions:

How vulnerable is the UK to further trade discrimination

of this type?

Which other developing countries may be tempted

to take such action?

What preventive measures and counter sanctions are

available to us?

Enclosures-flag(s)...........

Economic Levers

2. The use of economic levers in diplomacy is a huge

This paper concentrates narrowly on the use of

subject.

economic levers by developing countries against Britain

/and

CONFIDENTIAL