GRS 360
CONFIDENTIAL
CONFIDENTIAL
FN WASHINGTON
TO PRIORITY FCO
TELNO 675
SIC
OF 19223OZ MAR 85
TOP COPY
INFO PRIORITY HONG KONG, UKREP BRUSSELS, UKMIS GENEVA, PEKING
79)
YOUR TELA 3K TO ATHENS: HONG KONG AND GATT
1.
MINISTER (COMMERCIAL) WENT OVER THE GROUND WITH DEPUTY USTR SMITH THIS MORNING. SMITH RESPONDED THAT THE US GOVERMENT WOULD
CERTAINLY WANT TO SUPPORT THE COMMERCIAL AND ECONOMIC INDEPEND-
-H ENCE OF HONG KONG AND HE COULD SEE NO PROBLEM WIT OUR METHOD OF SPONSORING HONG KONG FOR CONTRACTING PARTY STATUS. EMPHAS- ISING THAT HE WAS SPEAKING BEFORE THERE HAD BEEN ANY INTER- AGENCY DISCUSSION OF THE MATTER, SMITH 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 YEARS AND MORE
FROM NOW.
2. 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, THE IRS WOULD PRESUMABLY NOT BE A GATT DECLARATION. IF WE DID
PRESS FOR SOME KIND OF REACTION ON THIS POINT, THE US GOVERNMENT
MIGHT WELL FEEL COMPELLED TO RESERVE ITS RIGHTS.
3. USTR HAVE NOW FOUND HONG KONG'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.
гроронин
RECEIVED IN DECISTRY
WEIGHT
HONG KONG AGREEMENT
LIMITED
HD/HKD
Moleco (E)
HD/FED
HD/PLANNING STAFF
DEP HD/PUSD
HD/PUSD
RD (MR WALKER)
PS
PS/LADY YOUNG
PS/MR RENTON
PS/PUS
SIR W HARD ING
SIR J FREELAND MR WILSON MR CROWLEY
PUSD
COPIES TO:- MR ROBERTS
MR FIFOOT MR WOOD
MR PEIRCE
MR MALLABY
NEWS DEPT LEGAL ADVISERS
LEGAL ADVISERS
ASSESSMENTS STAFF
CABINET OFFICE
CABINET OFFIC
MR DRC CHRISTOPHER CABINET OFFICE SIR P CRADOCK NO 10 DOWNING STREET
MR
MADELIN
CONFIDENTIAL
DTI
2 OMAR 1986
AL
109
axan