CONFIDENTIAL

JOINT LIAISON GROUP

[Contingent on Chinese]

our having begun discussions with the

Sinc our last debate, we have begun preliminary discussions

with the Chinese about arrangements for the establishment of the Joint Liaison Group. When these discussions have been

taken further, the Government will be able to announce the

composition of the group and other details in which you Lordships have expressed an interest.

GATT

I would like to emphasise the Government's commitment to maintaining Hong Kong's participation in these arrangements, which are of enormou s importance to the economic future of

the territory. We have not taken formal action with third

countries on the question, although we have of course

explained the agreement to our allies and they have welcomed

it. We will be discussing the action to be taken with the

Chinese Government as

a matter of priority in the context of the Joint Liaison Group.

CONFIDENTIAL

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