CONFIDENTIAL
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29/2
Crea См
FROM: JA Shepherd, ECD (E)
DATE:
CC:
23 July 1986
PS
PS/Mr Renton
PS/PUS
Mr Braithwaite o/r
Dr Wilson
Mr Masefield, FED
Mr Hum, HKD
Mr Llewellyn-Smith, Soviet Dept Miss Neville-Jones, Planning
Staff
Mr Renwick
PS/Mrs Chalker
CHINA AND THE GATT
Mr Meyer, News Dept
A
B
Problem
1. The Chinese Government announced in the GATT on 15 July that it was formally applying for resumption of its membership of GATT (UKMis Geneva telno Saving 36 of 17 July). China evidently hopes to participate in the new GATT round. The Secretary of State was asked about this at his press conference at the Foreign Press Association on 2 July. What action should we take?
Recommendation
2. I recommend that we should not resist Chinese membership, but because there would probably be more disadvantages than advantages we should ensure that the EC acquiesces only so long as the terms properly reflect China's status as a state trader. In public statements we should welcome the possibility of Chinese membership (as the Americans have done) but point to the problems that will need to be resolved before it can become a reality. DTI concur and will be submitting in a similar sense to Mr Clark.
CONFIDENTIAL