TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 90

Mexico

China

India

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CONFIDENTIAL

DSR 11C

Highly political approach to public

sector contracts, has already

threatened both UK and France (see

Annexes A and B). Textiles.

}

Big trade potential in the long run.

Very sensitive politically, scope for

trouble over Hong Kong. Does not

hesitate to use trade sanctions against

developed countries for political

ends (see Annex B). Textiles.

Recent surge in UK contracts, political

sensitivity of Mrs Ghandi, nationality

bill and UK media pose problems.

Textiles.

Papua New Guinea

British-controlled multinational has

substantial stake in the economy

(RTZ/Bougainville). Resentment has

boiled up in the past.

Hong Kong

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Huge projects under way, goodwill plays

vital part, local Chinese opinion of grow-

ing importance as they increase hold on

Hong Kong business and as reversion of

lease approaches. Student fees, nationality

bill and textile protectionism resented.

Loss of contracts through erosion of

good will more likely than policy of

open discrimination.

CONFIDENTI AL

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