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deemed to have lost GATT rights vis-a-vis Common Market countries. Hong Kong is not a contracting party but has had the GATT accepted on her behalf by the United Kingdom under Article XXVI-5(a). At talks with Hong Kong representatives in London in 1967 it was agreed that we should try to build up a doctrine of "acquired rights" by "behaving at the GATT in a manner that would help to establish useful precedents".
(b) If the talks end with results not entirely satisfac- tory to Hong Kong, U.K. participation gives a handle to domestic critics in Hong Kong to suggest that Hong Kong's interests have been subordinated to those of the United Kingdom. Something of this kind happened over the negotiations with Sweden in the summer of 1968.
(c) While again these talks are not negotiations, they may tend to set a precedent for the handling of negotiations, and it is therefore relevant that it can be expected to be generally in our interests to spin out any negotiations dealing with restraints on textiles as long as possible. At least
delay, and possibly a strengthening of Hong Kong's hand, may be achieved by giving Hong Kong a very modest measure of discretion in the first place, and obliging her to refer back to the United Kingdom if any question arises of any further concessions . The presence of a United Kingdom representative alongside Hong Kong at negotiations with the third country can in certain circumstances amount to a weakening of the joint U.K.- Hong Kong negotiating position, especially if the third /country is able to detect differences of attitude on the part
of the U.K. and Hong Kong, This can be avoided if there is from the outset a clear understanding between the U.K. and Hong Kong about the extent of the concessions which may be made and in what circumstances, but in practice unforeseen situa- tions often arise in the course of negotiations.
the
10. Conclusion. While/arguments appear fairly evenly balanced, it would appear that Mr. Stans' visit to Hong Kong has a special character and there is therefore something to be said
for a U.K. presence which would our overall responsibilities.
remind the United States of
On the other hand since we have
/already