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In due course there certainly will be a need for consultation with the international organisations such as GATT which will have an important influence on Hong Kong's future. This need is

acknowledged and taken into account in the negotiations. extent it will be HMG, as the Government formally responsible for the territory's external relations, which will need to take the lead

in such consultation rather than the Hong Kong Government. But at the moment we are still in the phase of bilateral and confidential

negotiation with the Chinese Government. It would be wrong to breach that confidentiality by anticipating the likely outcome of that negotiation an outcome which for our part will be a matter for final decision by this House. Discussion with such third parties as international organisations would be premature and possibly damaging to the course of the negotiations.

CONFIDENTIAL

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