RESTRICTED

Reference ...

HKK 6/8

101

Mr Crowson

Mr Stuart A 20/1

HONG KONG AND THE GATT

1.

Mr Hartridge has now reported (folio 99) that Sir F Mason returned to the charge in Geneva on the lines agreed, namely that Hong Kong could not be a precedent and that the GATT Secretariat should re- consider our 2 flag solution. However this was unsuccessful. Mr Long maintained that only if the EEC did not agree to the UK putting Hong Kong's points from within the UK delegation, would he then look at the 2 flag solution again. The Ambassador said that the matter would be referred to Brussels and since several delegations had raised the point he proposed sending Mr Long a letter to clarify the position. copy of the draft letter is attached to Mr Hartridge's letter.

2. The next step is thus to take up the matter in Brussels on the lines agreed at our October meeting with Mr Haddon-Cave. In order not to appear to be making a major issue of it, it will be raised in the EEC Committee on commercial matters (GATT) which is meeting in Brussels on 30 November. This line was endorsed by Mr Luyten and Mr Jagstaidt (of the EEC Council Secretariat).

3. Mr Nicoll in Brussels has agreed to these tactics (folio 100).

4.

I have discussed this with Mr Clark in TPD who had just spoken to Miss Elliott and we agreed that this was the sensible next move. I have also copied the correspondence to Mr Sellers (Hong Kong Government Office) and discussed it on the telephone. He also agrees.

5. No further action is proposed until we hear from Brussels following the 30 November meeting. The draft appears acceptable.

بكم الله

M A Goodfellow

Hong Kong and Indian Ocean Dept

16 November 1972

P.S.

كسو تله

I have also spoken to the. Sellers abou ther. Nicholl's letter andiscussed I with thiss

Elliäll TP.D.,

hotter to the Nicol Brussels

DD 897152 154596 500M 2/72 GM 3643/2

22. E

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