TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 80

CONFIDENTIAL

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By voting against or ceasing to abstain on

resolutions we could exert some leverage.

Benefits would, however, have to be weighed

against the cost of going back on earlier

positions and breaking ranks with the Ten.

DSR 11C

(d) 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, in each

case, against the probable cost: much aid

involves commitment to UK suppliers and delay

in aid projects will often result in money

already spent being wasted.

(e) Legal action under IPPAS where possible.

(f) Encouraging the promotion of multilateral

investment protection schemes. Previous

attempts to establish multilateral 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.

/16.

CONFIDENTIAL