Classification

CONFIDENTIAL

OUT TELEGRAM

talee

بادارة

HAY

Caveat

04012

RECEIVED IN REGISTRY

19 FEB 1986

DESK OFFICER

INDEX

PA

REGISTRY

Precedence

TELELETTER

ZCZC

1

ZCZC

TC

2

CONFIDENTIAL

CAVEAT

بي

3

FM

FM FCO

го

5

TELNO

OF

TO TELELETTER WASHINGTON

TELELETTER

OF 11130OZ FEBRUARY 86

AND TO

FROM JA SHEPHERD, ECD (E) FCO

101

60)

Acton Taken

Pawell

for this

our ranks 17hl

Seen, on?

M 12/2.

川に

P

l 13

//

/

121

TO BL CROWE, WASHINGTON

13 HONG KONG STATUS IN THE GATT AND POSSIBLE FREE TRADE AREA WITH

14 USA

1.

Thank you for your letter of 6 February. You will by now 16 have seen our reply to Hong Kong's telegram (FCO telno 245) and

their telno 420.

17

18 2. I share your perplexity at this curious US initiative. of 19 course it is consistent with Mike Smith's widely-advertised 20, "plurilateral" approach to trade liberalisation. But (as our

21 telno 245 made clear) it is hard to see what additional 22 advantages might accrue from a free-trade area with a trading 23 partner already affording most-favoured-nation status to

24 all-comers. I understand that Roy Williams took the opportunity

25 to discuss the question with Sir Edward Youde in a meeting this

2 morning. The Governor appeared similarly unclear about what

27 might be in it for the Americans, other than the possibility of 28 using such a free trade area as a negotiating counter with

27 neighbouring NICs (Korea, Taiwan).

YYYY

MAIN

ADDITIONAL

NNNN

File number

Dept

Catchword:

3.

Drafted by (Block capitals)

233 3319

Authorised for

despatch by:

For COD use only

ECD (E)

Initials

JW

Date/time'

11/2 15.00

Comcen reference

A WARREN

Telegram number

! Dy

X Y 48 (REV)

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