CODE 18-77

Mr PoweД1, HKD

CONFIDENTIAL

16

Reference......

HKK040/24

14MAR

HONG KONG'S FUTURE POSITION IN GATT AND THE CCC

1. In our telegram no 509 of 20 March 1984 we proposed a procedure whereby we would avail ourselves of our right under Article XXVI (5)(c) of GATT to have Hong Kong "deemed to be a contracting party". That telegram explains the limited role which the PRC would play.

2. Paragraph 5 of FCO telegram to Hong Kong No 394 of 12 March appears however to be suggesting some quite different procedure. It refers to Hong Kong being "proposed for separate membership by the UK and the PRC jointly". I do not understand why we are now referring to a proposal for membership, or what locus standi the PRC as a non-contracting party would have to join with us in making any such proposal. Are we really changing our policy, or is this passage meant to be a summary of what is proposed in FCO telegram no 509 of 20 March 1984?

J. Runows

F Burrows

Legal Counsellor

13 March 1985

Copy to:

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CONFIDENTIAL

he 14/3.

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