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(iii)

(iv)

13.

progress in implementing the White Paper on Constitutional Development.

The Hong Kong SAR as a separate customs territory and the GATT. A general exchange of statements.

International rights and obligations affecting

Hong Kong. We might propose the establishment of a sub-group.

We must recognise that the Chinese may seek to propose a more substantial corpus of work or a more elaborate pattern of meetings, We shall have to be ready perhaps covering topics unwelcome to us.

to resist such proposals if necessary.

(b) LOCATION OF MEETINGS

14.

Given that negotiations, signature and ratification of the agreement will all have taken place in Peking we will have a strong case for proposing that the first meeting of the Group should take place in London. The optimum pattern of meetings for the first year

might be:

July or September 1985: inaugural meeting in London.

End 1985/early 1986: second meeting in Peking

May-June 1986: third meeting in Hong Kong.

However the chinese may well press for an earlier meeting in Hong Kong, and there seems little to be gained by resisting this strongly. If a sub-group on treaties is established we could argue that it could most appropriately meet in London or Peking, given the present responsibility of the UK and the future responsibility of China for Hong Kong's external relations.

(c) MEMBERSHIP OF THE GROUP

15.

In view of the relatively light workload which we envisage for the Group and its initially pereipatetic character, we envisaage that up to 1 July 1988 members of the British side will be able to

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