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CONFITENTIAL
3
5.
More difficult to predict and control are strains
arising where
DSR 11C
Poor or improper performance by British-controlled
multinational corporations provokes a host country.
Private bodies or individuals beyond governmental
reach become involved in activities (for example in
sport or the arts) that are provocative to a host
country.
The UK media reports critically on a Third World
country or its leaders.
None of these problems are new.
But the likelihood
power to
6.
of their leading to hostile acts against the UK has
arguably increased in recent years. First, the oil
producers are increasingly aware of their own drength:
OPEC countries enjoy huge spending power (which can be
diverted to benefit one source of imports rather than
another); and the low absorbers have substantial holdings
of financial assets in the West (which gives them
disrupt financial markets by, for example, shifting
deposits). Second, there has been a change in the balance
of economic power in favour of newly industrialised
countries (NICs) such as Brazil, Mexico, South Korea, Taiwan,
Hong Kong, Malaysia and Singapore. These developments, to-
gether with the lessening of colonial ties, have increased
the capacity of such countries to hurt the UK and enhanced,
to some extent, their ability to withstand counter measures.
"t}་
CONFIDENTIAL
17.
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