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(111) WE CANNOT IMAGINE (D) WOULD BE CONFINED TO THE US, ESPECIALLY AS THEY CANNOT MEET THE ARTICLE X1X BENCHMARKS HONG KONG HAS APPLIED IN CASES OF GERMANY, NORWAY, SWEDEN AND EVEN CANADA. MATTERS WOULD THEREFORE ESCALATE. IN OTHER COUNTRIES.
4. ALL ARC PREFERABLE TO (E) BECAUSE IMPORT RESTRICTIONS WOULD BE ARBITRARY AND DISCRIMATORY IN PRACTICE, WOULD REDUCE POSSIBILITIES FOR BARGAINING AND WOULD INVOLVE LOSS OF COMMERCIAL ADVANTAGE OF CONTROL AT THE EXPORT END.
5. WHAT LONG SEEMS TO BE SUGGESTING IS THAT, AS (B) WOULD OFFEND THE PURITY OF GATT AND AS THE AMERICANS ARE ONLY REALLY AIMING AT JAPAN, HONG KONG, KOREA AND TAIWAN, THEY SHOULD DEAL WITH THESE COUNTRIES OUTSIDE THE GATT WITH THE CONTRACTING PARTIES TURNING A BLIND EYE. THE EFFECT OF THIS, IF TAKEN LITERALLY, WOULD BE TO DEPRIVE THESE COUNTRIES OF THEIR GATT RIGHTS IN THIS FIELD (TAIWAN IS NOT IN GATT). BUT THIS IS NOT WORKABLE BECAUSE A CONTRACTING PARTY CANNOT BE DEPRIVED OF ITS RIGHTS UNDER THE GENERAL AGREEMENT AGAINST ITS WILL AND CERTAINLY NOT ONE AS POWERFUL AS JAPAN. THE CONTRACTING PARTIES COULD NOT, IN PRACTICE, WALK BY ON THE OTHER SIDE. FURTHERMORE, THE GATT HAS LOST ITS VIRTUE ALREADY WITH THE C T A AND CANNOT
REGAIN IT IN THIS WAY.
6. OTHER POINTS I WOULD EMPHASISE ARE
(1) IF AMERICANS REQUEST CONSULTATIONS UNDER ARTICLE XX11 THEY CANNOT EASILY BE REFUSED. ACTION CAN BE REFUSED BUT NOT
TALKING:
(2) IF ANY MEETING IS HELD HONG KONG MUST BE REPRESENTED: (3) HONG KONG WOULD RECEIVE NO SUPPORT FROM OTHER DEVELOPING COUNTRIES IN GENEVA IF DISCRIMINATORY ACTION WERE TAKEN AGAINST HER AND PRECIOUS LITTLE FROM MOST DEVELOPED COUNTRIES. FOR THAT MATTER THE SAME GOES FOR JAPAN AND KOREA.
7. ALL THIS IS OF COURSE VERY MUCH FOR THE FUTURE IF THE WORST COMES TO THE WORST. FOR THE MOMENT HONG KONG'S BEST LINE WOULD BE TO CONTINUE TO SAY AS LITTLE AS POSSIBLE AND, IF ASKED FOR
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/AN OPINION,