CONFIDENTIAL
CHINA AND THE GATT
INTRODUCTION
S
to
1. There are strong political arguments for the West
and particularly for Britain in the light of our
agreement with China over the future of Hong Kong
respond positively to China's wish to accede to the
GATT. But accommodating a state trading country of
China's size and economic potential into the GATT
framework would pose problems, which could prove
severe and offer few compensating advantages in the
trade field. It would also highlight the exclusion
from the GATT of the Soviet Union, whose accession we
shall continue to want to avoid.
2.
What should be our attitude?
FOREIGN POLICY ASPECTS
General
3. We do not know in any detail how individual GATT
contracting parties will view the prospect of Chinese
accession, and can at this stage offer only an informed
guess. Most western countries want to encourage and
consolidate China's movement towards greater
liberalisation and involvement in the international
system since the death of Mao, and it is long-standing
British policy to try to draw China into participation
in international organisations.
Accession to GATT
CONFIDENTIAL