C) IN THE MEANTIME IT IS NOT (NOT) OUR INTENTION TO EXPLAIN IN PUBLIC THE EXACT PROCEDURE THAT WE HAVE IN MIND. IT IS HOWEVER ALWAYS POSSIBLE THAT THIS MIGHT BECOME KNOWN. IN ANY EVENT WE VERY MUCH HOPE THAT GOVERNMENTS WILL REFRAIN FROM ANY PUBLIC COMMENT, ESPECIALLY IF IT COULD HAVE THE AFFECT OF CASTING DOUBT ON THE INTENDED PROCEDURE, UNTIL WE HAVE BEEN GIVEN AN OPPORTUNITY FULLY TO EXPLAIN OURSELVES. WE SHALL THEN BE ASKING FOR UNDERSTANDING AND SUPPORT FOR WHAT WE INTEND, IN THE SPIRIT OF THE SUPPORT EXPRESSED BY GOVERNMENTS FOR THE JOINT DECLARATION ITSELF.
D) (NEXT TWO WORDS IN SQUARE BRACKETS) IF PRESSED BRIEFLY, THE PROCEDURE ENVISAGED IS TO USE GATT ARTICLE XXVI (5)(C). THE U.K. GOVERNMENT WILL MAKE A DECLARATION UNDER THE ARTICLE THAT HONG KONG IS DEEMED TO BE A CONTRACTING PARTY. THE P.R.C. GOVERNMENT WILL MAKE A PARALLEL DECLARATION ABOUT THE STATUS OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE P.R.R. AFTER 1 JULY, 1997. WE SHALL EXPLAIN VERY FULLY IN ADVANCE OF THE MAKING OF THE DECLARATIONS WHY WE CONSIDER THAT SUCH A PROCEDURE IS APPROPRIATE AND FEASIBLE. OUR VIEW IS SHARED BY THE GATT SECRETARIAT, WHOM WE HAVE CONSULTED.
INFORMALLY.
4. WE SHOULD BE GRATEFUL IF POSTS CONCERNED COULD EMPLASISE THAT THIS ADVANCE WARNING IS CONFIDENTIAL AND INFORMAL. WE MUST RE CAREFUL NOT TO PREJUDICE THE IMPORTANT DIPLOMATIC EXERCISE WHICH WE SHALL BE CONDUCTING WITH THE CHINESE BY AN IMPRESSION GETTING BACK TO THEM THAT WE HAVE BEEN JUMPING THE GUN.
YOUDE
HONG KONG AGREEMENT
LIMITED
HD/HKD
HD/FED
HD/PLANNING STAFF
DEP HD/PUSD
HD/PUSD
RD (MR WALKER)
COPIES TO:- MR ROBERTS
MR FIFOOT
MR WOOD
MR PEIRCE
NEWS DEPT
LEGAL ADVISERS
LEGAL ADVISERS
ASSESSMENTS STAFF CABINET OFFIC
CABINET OFFICE
MR MALLABY
MR DRC CHRISTOPHER
CABINET OFFICE
SIR P CRADOCK NO 10 DOWNING STREET
PS
PS/LADY YOUNG
PS/MR RENTON
PS/PUS
SIR W HARDING
SIR J FREELAND
MR WILSON
MR CROWLEY
PUSO
CONFIDENTIAL