GRS 400
CONFIDENTIAL
FM MANILA
TO IMMEDIATE F C O
TELNO 210
OF 160731Z APRIL 36
INFO IMMEDIATE HONG KONG
TOP COPY
CONFIDENTIAL
MKR122/1
RECEIVE!
DERY
1 7 APR 1986
>
DESK OF
THY
INFO PRIORITY UKMIS GENEVA
INDEX
PA
Action Taken
INFO ROUTINE PEKING
133 34 35
AB 17/14
YOUR TELNOS 169-171 TO CANBERRA: HONG KONG AND GATT: BRIEFING OF CONTRACTING PARTIES.
I TOOK ACTION THIS MORNING WITH DEPUTY FOREIGN MINISTER SHAHANI. MY CHINESE COLLEAGUE WILL MAKE HIS APPROACH
1.
CN 13 JUNE.
2. I SPOKE ON THE LINES OF PARA 1-7 OF YOUR SECOND TUR LEAVING A SPEAKING NOTE. MRS SHAHANI TOOK NOTE. MRS TIRONA (ASSISTANT MINISTER IN CHARGE OF UN MATTERS), WHO WAS ALSO PRESENT, SAID THAT THE MFA AND THE DEPARTMENT OF TRADE AND INDUSTRY WOULD NEED TO CARRY OUT A QUICK STUDY OF THE ECONOMIC AND COMMERCIAL IMPLICATIONS FOR THE PHILIPPINES. I SAID THAT IN THE SHOPT TERM THERE SHOULD BE NONE. FOR ALL PRACTICAL PURPOSES HONG KONG ALREADY OPERATED WITH THE GATT AS IF IT WERE A SEPARATE CONTRACTING PARTY. THE UK'S DECLARATION WOULD DO NO MORE THAN FORMALISE THE PRESENT SITUATION. THE IMPORTANT POINT WAS THAT HONG KONG PLAYED A MAJOR ROLE IN THE WORLD TRADING SYSTEM AND WAS AN ENGINE OF GROWTH IN THE REGION. THE ACTION WE AND THE CHINESE GOVERNMENT WERE TAKING WOULD GIVE PEOPLE IN HONG KONG CONFIDENCE THAT THE TERRITORY WOULD INDEED HAVE AUTONOMY IN THE ECONOMIC AND TRADE FIELDS BEFORE AND AFTER 1997, AND WOULD THUS HELP MAINTAIN HONG KONG'S PROSPERITY. THIS WAS AS MUCH IN THE INTERESTS OF THE PHILIPPINES AND THE OTHER COUNTRIES OF THE REGION AS IT WAS IN THOSE OF HONG KONG. THERE WAS A HEALTHY TRADE BETWEEN THE PHILIPPINES AND HONG KONG.
3. QUESTION ASKED BY MRS SHAHANI AND MRS TIRONA DURING OUR DISCUSSION INCLUDED THE FOLLOWING:-
(A) WOULD OUR ACTION CONSTITUTE A PRECEDENT? I SAID THAT THE HONG KONG SITUATION WAS UNIQUE. I COULD READILY THINK OF NO OTHER DEPENDENT TERRITORY WHICH WOULD MEET THE REQUIREMENTS NECESSARY TO BE DEEMED A SEPARATE CONTRACTING PARTY. (R) WERE WE ASKING FOR THE SUPPORT OF THE PHILIPPINE GOVERNMENT? I SAID THAT THE PROCEDURE WHICH WE AND THE CHINESE GOVERNMENT
CONFIDENTIAL
LINTENDED
(176)