When the Kuwait Investment Office began putting money into British Petroleum stock last October, Britain gratefully welcomed the new shareholder. The Thatcher government's ill-timed $12 billion public offering of BP shares had run smack into the worldwide stock crash, and the Kuwaitis were among the few investors willing to buy. Britain's relief turned to discomfort, though, as Kuwait's stake in the oil company kept growing, from 10% last November to a current level of 21.6%, making the Arab country by far BP's largest stockholder.
Getting nowhere with diplomatic requests that Kuwait unwind its investment, the Thatcher government last week ordered the...
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