GRS 360
CONFIDENTIAL
109
TOP COPY
CONFIDENTIAL
FN WASHINGTON
TO PRIORITY FCO
TELNO 675
SIC
CF 19223OZ MAR 95
INFO PRIOTT HONG KONG, UKREP BRUSSELS, UK IS GENEVA, PEKING
79
YOUR TELUS OK TO ATHENS: HONG KONG AND CATT
1.
MINISTER (COMMERCIAL) WENT OVER THE GROUND WITH DEPUTY UST? SMITH THIS MORNING. SMITH PESPONDED THAT THE US GOVERNENT WOULD
CERTAINLY WANT TO SUPPORT THE COMMERCIAL AND ECONOMIC INDEPEND-
_H ENCE OF HONG KONG AND HE COULD SEE NO PROBLEM WITH OUR METHOD OF SPONSORING HONG KONG FOR CONTRACTING PARTY STATUS. EMPHAS- ISING THAT HE WAS SPEAKING BEFORE THERE HAD BEEN AVY INTER- AGENCY DISCUSSION OF THE MATTER, SHITH COMMENTED HOWEVER THAT THE ADMINISTRATION COULD WELL HAVE A PROBLEM WITH THE EXTENT OF ANY COMMITMENT TO HMG OR TO HONG KONG ABOUT SEPARATE CONTRACTING PARTY STATUS AFTER 1997. THERE COULD BE A QUESTION ABOUT THE EXTENT TO WHICH THE US WOULD BE PREPARED TO REGARD HONG KONG AS A SEPARATE ENTITY AFTER 1997. THIS WAS NOT ONLY BECAUSE OF CONCERN THAT CHINA WOULD LAUNDER RESTRICTED EXPORTS THROUGH HONG KONG BUT BECAUSE THE ADMINISTRATION COULD NOT AT THIS POINT COMMIT THE US (AND IN PARTICULAR CONGRESS) TO A VIEW ON THE STATUS OF HONG KONG IN THE LIGHT OF EVENTS 13 YEAPS AND MORE
FROM NOW.
2.
1
SMITH SAID THAT THIS WAS NOT NECESSARILY THE CONCLUSION THAT WOULD EMERGE FROM THE INTER-AGENCY PROCESS, BUT HE CLEARLY THOUGHT IT THE LIKELY ONE. HE SUGGESTED THAT WE SHOULD BE VERY CAREFUL IN FOLLOW-UP ACTION TO AVOID PRESSING THE US (AND HE SUGGESTED OTHER COUNTRIES TOO, WHO MIGHT TAKE A SIMILAR VIEW) ON THEIR ATTITUDE TO THE POST 1997 ARRANGEMENTS FOR HONG KONG. IT WOULD HELP THAT, SINCE THE CHINESE WERE NOT IN THE GATT, THEIRS WOULD PRESUMABLY NOT BE A GATT DECLARATION. IF WE DID PPESS FOR SOME KIND OF REACTION ON THIS POINT, THE US COVERNMENT MIGHT WELL FEEL COMPELLED TO RESERVE ITS RIGHTS.
3. USTR HAVE NOW FOUND HONG KONO'S GATT TARIFF SCHEDULE AND WE HAVE FOR GOOD MEASURE SENT THEM A COPY OBTAINED FROM THE HONG KONG OFFICE HERE. KLEIN DID NOT CONCEAL HER VIEW THAT IT DID
NOT AMOUNT TO MUCH BUT SMITH DID NOT MENTION IT AND WE WOULD NOT, GIVEN THE GENERAL POLITICAL CONTEXT, EXPECT TO SEE IT
BECOME AN ISSUE.
WELCHT
HONG KONG AGREEMENT
гроронна
RECEIVED 2
Bunny
2 C MAR 1986
COPIES TO:- MR ROBERTS
MR WOOD
MR PEIRCE
NEWS DEPT
LEGAL ADVISERS
LEGAL ADVISERS
ASSESSMENTS STAFF CABINET OFFIC
MR MALLABY CABINET OFFICE
CABINET OFFICE
SIR P CRADOCK NO 10 DOWNING STREET
MR DRC CHRISTOPHER
MADELIN
P
DTI
LIMITED
HD/HKD
Molecc(e)
HD/FED
MR FIFOOT
HD/PLANNING STAFF
DEP HD/PUSD
HD/PUSD
RD (MR WALKER)
PS
PS/LADY YOUNG
MR
PS/MR RENTON
PS/PUS
SIR W HARDING
SIR J FREELAND
MR WILSON MR CROWLEY
PUSD
CONFIDENTIAL
AY
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