JA4AXL

CONFIDENTIAL

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1514

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GATT

CALL ON MRS CHALKER BY DEPUTY US TRADE REPRESENTATIVE: 16 APRIL

Points to Make

HONG KONG AND GATT

1.

Would like to mention briefly a subject about which Embassy

in Washington have already spoken to you: Hong Kong's future participation in the GATT.

2.

As you know, have now agreed with the Chinese on a procedure aimed at ensuring that Hong Kong's present autonomous position in the GATT continues after it becomes a Special Administrative Region

(SAR) of the PRC in 1997.

3.

We will shortly approach the GATT Secretariat to put the procedure formally into effect. We will make a declaration under GATT article XXVI (5) (c) that Hong Kong is deemed to be a contracting party. The PRC will make a parallel declaration about the status of the Hong Kong SAR after 1997, which will make it clear that Hong Kong may continue to be deemed to be a contracting party.

4.

In view of importance of external trade to Hong Kong, these arrangements of fundamental significance for Hong Kong's future stability and prosperity. We have been grateful for consistent US political support for objectives of Sino-British agreement on Hong Kong's future. Hope we can count equally on US understanding over

this issue. No action needed merely acquiescence when our and

Chinese declarations are circulated by GATT Secretariat.

HKK 102/1 RECEIVED IN REGISTRY

DE:

17 APR 1986

PA

VERY

Tukon

| AjB "14.

CONFIDENTIAL

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