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- The Chinese accept that resumption of their old seat would still involve an obligation to negotiate new terms: we would have to ensure the inclusion of tough provisions eg to allow safeguard procedures against surges of Chinese exports, in any
Protocol of Accession.
6. The need not to create a precedent for the Soviet Union is an important political factor. We have made clear to the Russians bilaterally that we do not consider that GATT membership would be appropriate in their case. One advantage of the formula that the Chinese are 'resuming' their seat is that it makes it harder for the Soviet Union to argue for admission. The Americans, who are prepared to acquiesce in China joining on suitable terms, are unequivocally opposed to any Russian involvment in GATT;
we.
But while in the immediate future it should be possible to block a Soviet application, there is no doubt that Soviet pressure will increase and it may become progressively more difficult to sustain the one-third blocking minority required under GATT rules.
7.
After protracted discussion at official level we and the DTI
concluded that:
-
Even if it were thought desirable, Chinese membership of GATT could almost certainly not be prevented (and we agreed with the DTI that we should not therefore seek to lobby against it, given the political penalites that might involve not least in relation to Hong Kong).
-
Chinese membership is probably undesirable in terms of the balance of interest within GATT; but we can mitigate the disadvantages provided that terms are
are agreed which adequately
reflect China's state-trading status.
-
The UK should align itself with the majority likely to acquiesce
in Chinese membership provided that the terms are right.
- We should join others in seeking appropriate provisions (eg a
special selective safeguard clause permitting additional quotas, a commitment by China to expand her imports in proportion to
economic growth, possible exclusion of China from benefits of most-favoured-nation tariff bindings).
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