Reference...

involved on Hong Kong's behalf, the fact remains that retaliation on Hong Kong's behalf or our own is permissible only upon authorisation by the GATT. Whatever the legal position, Hong Kong would probably continue to prefer to rely on bilateral negotiations rather than her GATT rights whether we were able in the last resort to uphold them or not.

7. I conclude that although it is as well to have our facts straight for the future, this change of advice from the FCO is primarily of doctrinal rather than of immediate practical or policy significance.

Co

Mr Hughes (Sec)

Mr Lan (CRE 1) (or)

Mr Dunnett (CRE 1

Mr Toms (CRE 2)

Mr Price (CRE 2)

Mr Ingram (CRE 3)

MJ Woodhead

CRE 1

14 September 1970

Mr Inglefield (CRE 5)

Miss Statham (CRE 1)

Mr Kinnear (PCO Hong Kong Department) Mr Mowforth (FCO Commodities Department) Mr Perceval (PCO Trade Policy Department) Mr Abbott (Geneva)

L10016 N919108

100,000 11,69 K.P3, 31

without enclosures

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