TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 82

APPENDIX 'A'

CONFIDENTIAL

DSR 11C

The three main cases of trade discrimination against the

UK by Third World countries over the past two years

have been these: -

Saudi Arabia

1. The film 'Death of a Princess', shown on television

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 government-

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 Khaled postponed

a state visit to London (which had not been officially

announced).

2. Efforts to defuse the situation included a visit by

Mr Hurd to Saudi Arabia in July 1980. He discussed the

image of the two countries portrayed in their respective

media. The Secretary of State followed in August in order

to settle differences and to demonstrate that relations

were on a sounder footing.

Normal trade relations resumed

thereafter.

13.

CONFIDENTIAL