B L Crowe Esq Washington

Jea Brian,

CONFIDENTIAL

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Foreign and Commonwealth Office

London SW1A 2AH

10 June 1985

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HKK 040/2+

#1965

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HONG KONG'S FUTURE POSITION IN THE GATT AND CCC

1. I have seen a copy of your letter of 31 May to John Shepherd.

(107

2.

You are right in thinking that the basis of Hong Kong's continuing participation in the GATT and CCC is high on the agenda for the first meeting of the Sino-British Joint Liaison Group (JLG). This will take place in London between 22-25 July.

3. The Chinese have indicated to us, unofficially, that "the GATT should not be a problem" If this proves to be the case (but I am not counting any chickens) we hope that we will be able to obtain their early agreement to a proposal which we shall make shortly prior to the first meeting to secure separate Contracting Party status for Hong Kong within the GATT. If such agreement is forthcoming, it would clearly be right to brief the Americans (and other friendly Contracting Parties) before we take up the matter officially with the GATT Secretariat.

4. We shall keep you informed.

cc: Mr Shepherd, ECD (E)

Mr Elliott, FED

Mr Fowler, NAD

JD I Boyd Esq, Hong Kong

PA B Thomson Esq, Peking

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A C Galsworthy

Hong Kong Department

A E Montgomery Esq, UKMIS Geneva Miss RJ Spencer, UKREP Brussels A J Pryor Esq ITPL/DTI

CONFIDENTIAL

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