999-36

From:

JA Sankey Esq CMG UKMIS

37-39 rue de Vermont 1211 Geneva 20

CONFIDENTIAL

Roy Williams, Deputy Secretary

DEPARTMENT OF TRADE AND INDUSTRY 1-19 VICTORIA STREET

LONDON SWIH OET

Telephone (Direct dialling) 01-215) 5317

GTN 215)

(Switchboard) 215 7877

27 February 1986

Dan

GATT : CHINA AND HONG KONG

This is a belated acknowledgement of your letter of 29 January reporting your conversation with Dunkel on this topic. Everything you say confirms our view here that delicate negotiations lie ahead over China and Hong Kong in GATT; but that there is no immediate or early crisis. We agree with your remarks in your final paragraph about lobbying.

As it happens, I saw Sir Edward Youde briefly on 11 February. We did not discuss the subject in much depth, but he said that on the trade/political front Hong Kong's first priority was to get its GATT status settled, and to that end it was being very careful not to antagonise China in any way - eg by getting drawn into premature free trade talks with the US.

er

Ryhm

cc Mr Johnson, ITP1, DTI

Mr Braithwaite)

Mr Shepherd

Mr Galsworthy )

} FCO

Miss Spencer, UKREP Brussels Mr Boyd, Hong Kong

HKK 040/2.

REC

- 6 MAR 1986

„GISTRY

..on Taken

Ajo /3

Kavya 3/3

In Kayden in.

Русот /

CONFIDENTIAL

68

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