HD
DT?
all. cc.
CVA/FCO 002/02
TT FCO
TT PEKING
Maand Alexind.
TT HONG KONG
*T KEP BRUSSELS
1 DL
45 880
COMES HAVE BEEN PA
Corected
Fiprot, Minsk
5
Ad.
Iwane RD(E).
Värsion.
trakel, Grom.
A
CONFIDENTIAL
TELĖLETTER
FM: DAME ANNE WARBURTON, UKMIS GENEVA.
TO A G GALSWORTHY ESQ. HONG KONG DEPT.) FCO,
DATED: 1 MAY, 1985.
COPIED TO: D & BLUNT ESQ., PEKING.
V2 | BOYD ESQ., POLITICAL ADVISER, HONG KONG.
MISS & SPENCER, UNREP BRUSSELS.
AJ LANE ESQ., HP, DI.
HONG KONG AND THE GATT
1. WE HAVE NOW BEEN ABLE TO STUDY CAREFULLY THE TEXTS IN
YOUR SECOND TELELETTER OF 22 APRIL AND TO DISCUSS THEM BOTH
WITH THE GATT LEGAL ADVISER AND WITH MICHAEL CARTLAND
UNSELLOR HONG KONG THE FOLLOWING COMMENTS ON THE TEXTS AND ON YOUR FIRST TE SLETTER OF 2 ? APRIL HAVE THE IR AGRLEMENT.
2. OUR AIM IN THIS EXERCISE MUST SURELY BE 10 ESTABLISH WITHOUT DOUBT HONG KONG PUSITTON AS & FULLY ACCONTEN CONTRACTING PARTY, REGARDLESS OF THEORETICAL NICETIES OVER OUR VIEWS ON DE FACTO AND DE JURE STATUS IN GATY. THE 90 GATT CPS REFERRED TO IN SECPETAR JAT MATERIAL DO NOT INCLUDE THOSE MAINTAINING DE FACTO APPLICATION (THEY ARE LISTED
SEPARATELY, FOR EXAMPLE, IN "GATT: WHAT IT IS, WHAT IT DOES!). AM CLAD THEREFORE THAT YOU AGREE THAT HONG KONG SHOULD ALSO MAKE A DECLARATION.
3. YOU ASKED FOR COMMENTS ON THE THREE TEXTS:
(A) THE UK DECLARATION SINCE THE SECRETARIAT VIEW IS
THAT DE JURE CP STATUS IS NOT ACHIEVED UNTIL B IS RECEIVED, SHOULD IS PETTER REPLACED BY COULD1.
THE WORD COMMUNICATION "WOULD PROBABLY BE BETTER THAN **NOTE OR LETTER.
B; THE HONG KONG DECLARATION: WOULD IT NOT BE BETTER
TO READ SIMPLY: AM INSTRUCTED TO REFER TO ARTICLE XXV) (5)(0) OF THE GENERAL AGREEMENT OF TARIFFS AND TRADE AND TC CONFIRM THAT HONG KONG WISHES TO BE DEEMED A CONTRACTING PARTY TO THE GATT. OUR TRINKING IS TO REDUCE THE POSSIBILITY
IN THE FUTURE OF ANY DOUBT WHETHER THE DECLAPATION REMAINS
VALID AFTER THE DEPARTURE OF THE GOVERNOR
AND THE GOVERNMENT IN ITS PRESENT FORM. WE WOULD
HD MORE EXPECT THE TERM HONG KONG SRA TO BE USED
IN THE GATT AFTER 1997 THAN THE TERM CROWN COLONY OF HONG KONG EEFORE THAY DATE.
10) PRO DECLARATION: SINCE I WOULD EXPECT THE UK AND HONG KONG DECLARATIONS TO BE ADDRESSED 10 THE DIRECTOR GENERAL, THE END OF PARAGRAPH 1 WILL NEED TO BE AMENDED TO READ TO THE LIRECTOR GENERAL, IN PARAGRAPH 2 THE HONG KONG AREA' WOULD BETTER READ SIMPLY HONG KONG MORE *
IMPORTANTLY. THE LAST SENTENCE SHOULD BE DELETED SINCE SUCH A REQUEST WOULD REQUIRE A RESPONSE, PROBABLY AFTER CONSIDERATION OF THE MATTER BY THE CPS, WHEREAS OUR APPPOACH IS TO SETTLE THE MATTER WITHOUT REFERENCE TO THE OPS.
THE GATT LEGAL ADVISER SEES NO PROBLEMS WITH THE TEXTS INCLUDING TRARE AMEIJENTS O
4. YOUR PARAGRAPH 5 TACKLES THE POSSIBILITY THAT PRC DECLINES TO AGREE TO SEPARATE OP STATUS FOR BONG KONG. i BELIEVE CHINA IS UNLIKELY TO TAXE SUCH A POSITION IN VIEW OF SECTION VI OF ANNEX 1 OF THE UK/PRC ASREEMENT. BUT IF YOUR CONCERN PACVES WELL FOUNDER, OUR PROPOSAL WOULD BE THAT HMG SHOULD MAKE IT CLEAR TO THE CHINESE GOVERNMENT IN ADVANCE THAT WE WOULD I AMY CASE GO AHEAD WITH THE UK AND HONG KONG DECLARATIONS AND THAT ANY SUBSEQUENT ACTION BY PRC TO TRY TO RESCIND SUCH STATUS WOULD HAVE GRAVE POLITICAL AND ECONOMIC RI:PERCUSSIONS. AS I HAVE POINTED OUT, THE ONLY PRECEDENT FOR THE PRC TO DO THIS WOULD (ASSUMING IT BECOMES A CP) BE UK ACTION H RESPECT OF RIGDESIA, BUT LET US REBUSTLY PRESS FOR THE PREFERRED OPTION OF SECURING A FRC STATEMENT IN ORDER TO ALLAY ANY FEARS AMONG OTHER CPS (SEE BELOW).
5. IF THE GHINESE ASK HOW CP STATUS FOR HONG KONG WOULD AFFECT THEIR OWN RE-ENTRY INTO GATT, WE SHOULD OF COURSE DENY ANY LINK. HONG KONG CP STATUS WOULD NOT AFFECT THE CHINESE APPLICATION ONE WAY OR THE OTHER, ANY MORE THAN DID HONG KONG'S PRIOR MEMBERSHIP OF THE MFA.
6. ARTHUR DURSEL IS KEEN THAT, TO AVOID SUSPICIOR PROBEST OTHER CPS, WE SHOULD CLARIFY THE POSITION INFORMALLY WITH THOSE ***MOST CONCERNED IN ADVANCE OF ANY FORMAL ACTION. BUT THAT IS
CLEARLY NOT POSSIBLE UNTIL WE HAVE SETTLED OUR OWN IDEAS AND SOUNDED GUT THE CHINESE. DURING THE VISIT OF THE CHIEF SECRETARY DESIGNATE, ARTHUR DUNKEL INITIALLY FLOATED THE SUGGESTION THAT ACTION TO GAVE HONG KONG SEPARATE CP STATUS MIGHT BE BEST-HELD OFF FOR A FEW YEARS. HOWEVER, HP LATER MOVED TOWARDS OUR VIEW THAT EARLIER ACTION IS HOME APPROPRIATE. WE ALL AGPFE THAT IT 15 IMPORTANT TO AVVOID THE ISSUE OF CHINA'S RE-ENTRY INTO SATT COINCIDING WITH HONG KOME'S PUSH FOR SEPARATE CP STATUS: INDEED TIMING 4S THE ONLY LINK BETWEEN THE TWO TOPICS.
7. AN ADDITIONAL REASON FOR EARLIER GATHER THAN LATER ACTION MIGHT BE TO CIVE TO THE OUTSIDE WOLD A SIGN OF PROGRESS FOLLOWING THE INITIAL MEETINGS OF THE JLG, IT BEING WIDELY KNOWN (FROM ANNEX 2, PARAGRAPH OF THE UK/PRC AGREEMENT) THAT
EGATT IS HIGH ON ITS AGENDA.
ESTE SIGNED ...ANNE WARD
WINNIN
CON PARA 7 LINE 2 SHOULD READ WORLD' INSTEAD OF WOLD
90 OK K
TKS FINE K