TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 79

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DSK UC

(b)

state trading enterprises to apply fair and

equitable treatment' in foreign trade. But

by implication this is less than 'most favoured

nation' treatment and no GATT contracting

Party has ever brought a case to test what

it means in practice.

Initiatives within the EC. The UK could argue

for a change in the distribution of EC aid

or of EIB loans. But it is extremely

difficult to influence the direction of such

funds in the short term; the threat of action

might, however, have some symbolic value.

If there are economic cooperation agreements

between the EC and a relevant economic group,

we could also threaten to use our influence

to cool cooperative enthusiasm within the

EC, though in practice there are few agreements

from which the NICs derive enough benefit to

make this a profitable sanction. More generally,

our ability to wave a big stick at LDCs over

access to the European Market is limited because

we are already hawkish in key areas such 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 issues on which

individual LDCs are vulnerable to pressure in

the UN (for example, Indonesia and East Timor).

/By

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