GRS 370
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1697
OF 03094OZ JUNE 86
Confidential TOP COPY
(384)
INFO PRIORITY PEKING, UKMIS GENEVA
UKMIS GENEVA PLEASE PASS COPY TO CARTLAND
HRR12211
RECEIVED IN RÉGISTRY
10 JUN 1986
DESK OFFICER
INDEX
REL
PA
Action
375)
OUR TELNO 1662: HONG KONG AND GATT
DUNKEL, DIRECTOR GENERAL OF GATT, STOPPED OVER IN HONG KONG YESTERDAY EN ROUTE FROM THE GATT MEETING IN SEOUL BACK TO GENEVA. HE MADE TWO POINTS TOUCHING ON HONG KONG'S NEW STATUS IN GATT N THE LIGHT OF INDIA'S RESERVATION OF HER POSITION IN THE GATT COUNCIL:
ABIS
(A) HE WAS WORRIED THAT AN EARLY ARTICLE XXV (5)(C) DECLARATION BY PORTUGAL IN MACAU'S FAVOUR COULD BLOW OPEN THE WHOLE ISSUE AS IT MIGHT INCREASE CONCERN OVER THE POSSIBILITY OF THERE ULTIMATELY BEING 3 OR POSSIBLY 4 CHINESE VOTES - EVEN THOUGH THE GATT DID NOT NORMALLY VOTE ON ISSUES SEMICOLON
(B) HE CONSIDERED HT DESIRABLE FOR HONG KONG TO BE SEEN TO
OPERATE COMPLETELY SEPARATELY FROM BRITAIN ON TRADE POLICY AND RELATED MATTERS, NOT ONLY IN GATT BUT THROUGHOUT THE WORLD.
2. ON (A) HE SAID THAT, GIVEN THE TOTAL ABSENCE OF ANY MACAU ACTIVITY IN GATT, AND ONLY MARGINAL ACTIVITY IN THE MFA, A MOVE TO DECLARE MACAU A CONTRACTING PARTY COULD BE QUERIED BY INDIA, THOUGH BRAZIL MIGHT BE DISPOSED NOT TO EMBARRASS PORTUGAL. THIS COUPLED WITH THE UNFORTUNATE PRECEDENT OF THE 3 SOVIET VOTES IN UN COULD CONJURE UP REAL CONCERN AMONG CP'S. WHILST HE REAFFIRMED THAT HONG KONG'S CP STATUS IN THE GATT WAS NOW IRREVERSIBLE, HE WAS SURE THAT IT WOULD BE IN OUR INTEREST TO ENSURE THAT THE INDIANS WERE GIVEN NO PRETEXT TO RAISE THE MATTER AGAIN AT FUTURE COUNCIL MEETINGS.
3. ON (B) DUNKEL ASKED ABOUT HONG KONG'S REPRESENTATION IN THE CAPITALS OF ITS MAJOR TRADING PARTNERS AND STRESSED THE DESIRABILITY OF OUR BEING SEEN TO OPERATE DIFFERENTLY FROM BEFORE. HE THOUGHT THAT THIS WOULD MAKE THAT MUCH EASIER TO DEFEND HONG KONG'S CASE AGAINST ATTACKS BY INDIA OR OTHERS, IN THE SENSE THAT AUTONOMY IN THE CONDUCT OF HONG KONG'S EXTERNAL COMMERCIAL RELATIONS WAS BEST DEMONSTRATED BY US CONDUCTING OUR OWN BILATERAL RELATIONS IN THE CAPITALS OF OTHER CP'S.
Confidential
4