SECRET
(D) PARAGRAPH 3, FOURTH SENTENCE: AMEND TO READ:
PROVIDED FOR INTHE ANNEX.''
(E) PARAGRAPH 3: THE IMPLICATION THAT THE ESTABLISHMENT OF THE SAR WOULD BE THE CAUSE OF PROBLEMS, THOUGH TRUE, WOULD NOT BE WELL RECEIVED IN PEKING. WE SUGGEST THAT THE LAST FOUR SENTENCES BE PEDRATED ALONG THE FOLLOWING LINES:
**THERE WILL, OF COURSE, HAVE TO BE CONSULTATION WITH HONG KONG'S PARTNERS IN THE GATT OVER THE TERMS UNDER WHICH
HONG KONG CONTINUES TO PARTICIPATE IN THAT AGREEMENT. THERE
IS EVERY REASON TO SUPPOSE THAT ANY TECHNICAL PROBLEMS
WILL BE RESOLVED WITHOUT DIFFICULTY. ALL HONG KONG'S TRADING PARTNERS HAVE AN INTEREST IN ENSURING THAT HONG KKONG CONTINUES TO THRIVE.''
EVANS
LIMITED
HD/HKD HD/FED MR BOYD
2
SECRET
COPIES TO:
SIR P CRADOCK (2)
MR BICKFORD,
MR FITFOOT.
LEGAL ADVISERS
SIR E YOUDE, K195A