GRS 230

CONFIDENTIAL

FM UKMIS GENEVA

TO PRIORITY FCO

TELNO 222

CONFIDENTIAL

HRK 122. RECEIVED IN

STHY

12 MAY 1986

RY

OF 010941Z MAY 1986

INFO PRIORITY HONG KONG, PEKING, BRASILVA, NEW DELH

MY TELNO 217 : GATT AND HONG KONG

1.

1:

WHEN CALLED ON DUNKEL (DG, GATT) HE PROFESSED TO BE COMPLETELY RELAXED. SINCE HIS RETURN TO GENEVA FROM HIS VISITS TO WASHINGTON AND HELSINKI, NO ONE HAD RAISED HONG KONG WITH HIM, EVEN INFORMALLY, ALTHOUGH BOTH AMBASSADORS BATISTA AND SHUKLA (INDIA) HAD HAD THE OPPORTUNITY TO DO SO.

2.

NEVERTHELESS, DUNKEL ACKNOWLEDGED AMBASSADOR BATISTA'S PERSONAL REPUTATION FOR CAUSHING TROUBLE, AND HE MIGHT CHALLENGE THE SECRETARHAT'S HANDLING OF HONG KONG'S CONTRACTING PARTY STATUS AT THE 22 MAY COUNCIL.

3. IF THAT HAPPENED, DUNKEL PROMISED TO BE VERY FIRM. THE SECRETRIAT HAD ACTED IN STRUCT ACCORDANCE WITH ARTICLE XXV*(5)C WHICH WAS VERY CLEAR. HIS POSITION WAS REINFORCED BY THE LANGUAGE OF THE CHINESE DELEGATION WHICH HELPFULLY SPELT OUT THE FULL EXTENT

OF HONG KONG'S COMMERCIAL AUTONOMY AFTER 1997. THE CHAIRMAN OF THE GATT COUNCIL (AMBASSADOR PARK OF SOUTH KOREA) WOULD IN ACCORDANCE

WITH GATT PROCEDURES, WELCOME THE NEW CP ON 22 MAY. HE DID NOT

EXPECT TROUBLE, BUT IT WOULD BE HELPFUL IF THERE WAS TO HAVE A

CHORUS OF SUPPORT FROM A CROSS-SECTION OF WELL-WISHERS. SAND WE

ALREADY HAD UT UN MIND TO ORCHESTRATE SUCH SUPPORT ON A CONTINGENCY

BASIS.

WE AGREED TO KEEP A CLOSE EYE ON HOW THE SITUATION DEVELOPED, AND TOUCH BASE BEFORE THE MAY COUNCIL.

5. # SUBSEQUENTLY SAW SHUKLA (INDIA) WHO SAID HE WAS AWAITING

#INSTRUCTIONS. THIS REINFORCES THE POINT MADE UN PARA 4 OF MY TUR

THAT IT WOULD BE HELPFUL #F NEW DELHI COULD CHECK THAT SHUKLA WILL

BE TOLD TO ACCEPT HONG KONG AS A CP WITHOUT COMMENT.

215

SANKEY

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D (FE)

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

DEP/HD PUSD

PS/MR RENTON MR WILSON

CONFIDENTIAL

313

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