CONFIDENTIAL
30603
1
(C)
(D)
(E)
(F)
2.
BE MADE FOR THE TERRITORY TO CONTINUE TO PARTICIPATE
FULLY AND FREELY IN THE COMMERCE OF THE FREE WORLD, AND
IN ITS TRADING INSTITUTIONS, OF WHICH THE MOST IMPORTANT
IS THE GATT. THIS PRINCIPLE WAS ENSHRINED IN THE
AGREEMENT WHICH THE US WELCOMED.
-
WE HAVE HAD A YEAR OF DIFFICULT NEGOTIATIONS WITH THE
CHINESE ABOUT THE METHOD BY WHICH HONG KONG'S
PARTICIPATION IN THE GATT SHOULD BE SECURED. THIS WAS A
VERY SENSITIVE AREA FOR THE CHINESE, INVOLVING AS THEY
SAW IT THE APPEARANCE OF A DEROGATION FROM THE IR
AUTHORITY OVER HONG KONG, AND THEIR RELINQUISHING OF THE
HONG KONG CARD IN THEIR SEPARATE NEGOTIATIONS OVER THEIR
OWN PARTICIPATION IN THE GATT. BUT, BECAUSE OF THE
IMPORTANCE OF THIS QUESTION FOR CONFIDENCE IN HONG KONG,
THEY HAVE AGREED TO OUR PROPOSALS, AND TO THE FIRST-EVER
JOINT SINO-BRITISH LOBBYING EXERCISE TO SEEK THE
ACQUIESCENCE OF KEY GATT MEMBERS.
WE ARE CONSULTING 37 COUNTRIES. ALL WHO HAVE SO FAR
INDICATED REACTIONS (MORE THAN HALF) HAVE EXPRESSED
SUPPORT. ONLY THE AMERICANS ARE TALKING OF RESERVING
THEIR POSITION.
IF THE AMERICANS DID ENTER A RESERVE, THE EFFECT ON HONG
KONG CONFIDENCE WOULD BE SERIOUSLY ADVERSE. HONG KONG
TRADERS WOULD ASSUME (PROBABLY RIGHTLY) THAT OTHER
COUNTRIES WOULD FOLLOW SUIT, AND THAT THE WHOLE CAREFULLY
CONSTRUCTED EDIFICE OF INTERNATIONAL SUPPORT FOR HONG
KONG'S CONTINUING IN ITS PRESENT TRADING STATUS WOULD
CRUMBLE.
WE FIND IT HARD TO BELIEVE THAT IN THE CIRCUMSTANCES THE
US GOVERNMENT IS SERIOUSLY CONSIDERING SUCH A STEP,
ESPECIALLY SINCE WE HAVE BEEN AT PAINS TO CONSULT THEM
WELL IN ADVANCE ABOUT OUR INTENTIONS, AND SINCE NO
ACTION IS BEING REQUESTED, ONLY SILENT ACQUIESCENCE. WE
WOULD TAKE IT VERY MUCH AMISS IF THEY DID ENTER A
RESERVATION.
WE ARE AIMING, IN CONCERT WITH THE CHINESE, TO MAKE THE
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CONFIDENTIAL