[PRIATD]

CONFIDENTIAL

CALLS BY THE GOVERNOR OF HONG KONG, 14 AND 15 MAY 1986

C.

Hong Kong Government Office, Geneva

POINTS TO MAKE

1.

This question requires further thought. Chinese suspicions aroused. Have established Hong Kong's right to

act independently in GATT. Does not automatically flow

from that that Geneva Office should be detached for all

purposes, including protocol and privileges, from UKMIS

Geneva (and after 1997 from Chinese mission). Chinese will be expecting office to continue to be physically separate, and to act autonomously on GATT matters, but to continue to be subordinate to UKMIS (later Chinese mission) on non-GATT

matters, and to come under British (later Chinese)

diplomatic umbrella in Geneva.

2.

Cannot just at

just at present see what advantage to be

gained by going beyond this. Will in any case have to proceed with care: Chinese are bound to be suspicious if it looks as though we are going to inordinate lengths simply

to exclude them.

CONFIDENTIAL

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