UK plans diplomatic drive in emerging markets

LONDON,  (Reuters) – Britain plans to open new  diplomatic missions in developing nations as part of a drive to  increase its influence in fast-growing emerging economies, while  cutting costs in Europe, a government source said yesterday.

The year-old coalition government wants to build closer  relations and encourage trade with developing countries,  particularly emerging giants such as China, India and Brazil, to  help boost Britain’s hesitant economic recovery.

The shift in diplomatic resources will be announced to  parliament today by Foreign Secretary William Hague.

He will also set out plans to save 140 million pounds ($223  million) over three years from his department’s budget as part  of moves to rein in a record peacetime budget deficit.

Hague has insisted that, despite austerity measures which  call for an average 19 percent cut in spending by government  departments over four years, there will be “no strategic  shrinkage of Britain’s influence”.

Britain plans to open new embassies in El Salvador,  Kyrgyzstan and south Sudan, whose people voted to secede from  the north in a referendum in January, the source said.

London also plans to open an embassy in Somalia, once the  security situation permits, and one in Madagascar, once it has a  democratically elected government, the source said.

Britain plans to open or upgrade seven consulates in India,  China and Brazil and in general will be moving diplomatic  resources to Asia and Latin America, the source said.