DD PEKING 120100Z
GRS 626
CONFIDENTIAL
DESKBY 120100Z
FM FCO 091645Z JULY 85
CONFIDENTIAL
TO IMMEDIATE HONG KONG
TELEGRAM NUMBER 1000 OF 11 JUL
Ник
31525
1040/24
RECEIVED IN REGISTRY
12 JUL 1985
DESK OFFICER
REGISTRY
INDEX
PA
Action Taken
INFO IMMEDIATE PEKING DESKBY 1201002
INFO PRIORITY UKMIS GENEVA (COPY FOR CARTLAND), UKREP BRUSSELS,
BRUSSELS (FOR JONES), WASHINGTON
OUR TELNO 909, YOUR TELNOS 1000 AND 1058, AND PEKING TELNO 873: HONG KONG, GATT AND CCC: INSTRUMENT OF ENTRUSTMENT TO CONDUCT
EXTERNAL COMMERCIAL RELATIONS
1. IN OUR TUR WE MENTIONED THAT IT HAD NOW BEEN AGREED THAT HONG
KONG SHOULD BE ISSUED WITH A FORMAL ENTRUSTMENT TO CONDUCT ITS
EXTERNAL COMMERCIAL RELATIONS AUTONOMOUSLY. MY TWO IFT'S CONTAIN
DRAFT TEXTS, AGREED WITH DTI LEGAL ADVISER, OF
(A) A FORMAL INSTRUMENT OF ENTRUSTMENT:
(B) A COMPLEMENTARY AND CONFIDENTIAL DESPATCH.
2. WE HAVE CONSIDERED VERY CAREFULLY WHETHER IT WOULD IN FACT BE
WISE TO ISSUE YOU THE ENTRUSTMENT VERY SHORTLY BEFORE THE MEETING
OF THE JLG. THE ARGUMENTS ARE FINELY BALANCED. MINISTERS HAVE
DECIDED THAT WE MUST INFORM THE CHINESE AT THE JLG OF THE
ENTRUSTMENT OR OF OUR INTENTION TO ISSUE IT, AND OF ITS GENERAL TERMS, IN ORDER TO AVOID THE RISK THAT THE CHINESE SUBSEQUENTLY LEARN OF IT, THROUGH A LEAK OR IF WE HAD TO SHOW IT TO GATT, AND BECOME SUSPICIOUS OF ITS CONTENTS (EG ON EXTERNAL RELATIONS IN
FIELDS OTHER THAN THE COMMERCIAL). IF WE INFORM THEM THAT IT HAS ALREADY BEEN ISSUED THERE IS THE RISK THAT THEY COULD FEEL WE
HAVE DELIBERATELY DENIED THEM AN OPPORTUNITY TO COMMENT BY SLIPPING IT THROUGH WITHOUT ANY FOREWARNING (EG IN OUR GATT PAPER) IMMEDIATELY PRIOR TO THE JLG MEETING. ON THE OTHER HAND, WERE WE TO INFORM THEM ONLY OF AN INTENTION TO ISSUE THE ENTRUSTMENT THERE IS A STRONG POSSIBILITY THAT KE WOULD ASK US TO HOLD OUR HAND UNTIL HE HAD HAD TIME TO STUDY THE TERMS AND
CONSULT COLLEAGUES IN PEKING. EVEN IF THE CHINESE DID NOT
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