GRS 300
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1633
OF 28101OZ MAY 86
Mikk 122/1
RECEIVIO IN, E
Confideri
*INFO PRIORITY PEKING, TOKYO, WASHINGTON, UKMI'S GENEVA
357
UKMIS GENEVA PLEASE PASS CORY TO CARTLAND
(368
HONG KONG AND GATT
UKMIS GENEVA TELNO 278
27862716
1. # TOOK THE OPPORTUNITY DURING MY RECENT VISIT TO JAPAN TO RAUSE THE QUESTION OF THE JAPANESE DEMARCHE REPORTED IN PARA. 5 OF TUR DURING A BRIEF CALL WHICH WAS ARRANGED FOR ME AT SHORT NOTICE ON WATANABE, MINISTER OF INTERNATIONAL TRADE AND INDUSTRY.
2.
AFTER EXPRESSING MY THANKS FOR JAPAN'S PUBLIC SUPPORT OF HONG KONG'S SEPARATE GATT STATUS, SAID THAT WAS CONCERNED TO HEAR THAT THE JAPANESE GOVERNMENT WOULD APPARENTLY LIKE TO CONTINUE TO EXAMINE THE STATUS OF HONG KONG IN THE GATT, INCLUDING LEGAL THE ASPECTS, AFTER JULY 1997 WHEN IT BECOMES A SAR OF CHINA''. SINGLE MOST IMPORTANT FACTOR AFFECTING CONFIDENCE IN HONG KONG'S FUTURE WAS THAT EFFECTIVE ARRANGEMENTS SHOULD BE MADE FOR THE TERRITORY TO CONTINUE TO PARTICIPATE FULLY IN THE COMMERCE OF THE FREE WORLD. GATT WAS A VITAL PART OF THIS.
3. WE AND THE GATT LEGAL EXPERTS WERE CONFIDENT THAT THERE WOULD BE NO QUESTION OF HONG KONG'S CP STATUS CEASING SOLELY BY VIRTUE OF THE CHANGE OF SOVEREIGNTY IN 1997. THE JAPANESE RESERVATION, IF IT BECAME PUBLIC KNOWLEDGE, COULD HAVE THE MOST UNFORTUNATE CONSEQUENCES BOTH FOR HONG KONG'S CURRENT STABILITY AND FUTURE PROSPERITY. WE THEREFORE HOPED THE JAPANESE GOVERNMENT WOULD NOT TAKE ANY ACTION WHICH MIGHT UNDERMINE HONG KONG'S GATT STATUS
AFTER 1997.
4.
WATANABE, WHO WAS PRESSED FOR TIME, PROFESSED IGNORANCE OF THE DEMARCHE. HE PROMISED TO LOOK INTO IT AND SAID THAT JAPAN STRONGLY SUPPORTED HONG KONG'S POSITION IN THE GATT.
5. ERHC HO MADE THE SAME POINTS TO HAYASHI OF THE MINISTRY OF FOREIGN AFFAIRS AT THE DINNER THEY GAVE US ON 26 MAY. ONCE AGAIN, THE INITIAL REACTION WAS ONE OF TOTAL IGNORANCE, BUT IT LATER BECAME CLEAR THAT THEY HAD EXCHANGED NOTES WITH THE US AND THAT THEY KNEW THE NITHAL USTR LINE. HO STRESSED THAT WITH STATE DEPARTMENT SUPPORT FOR US THE US POSITION HAD CHANGED.
Confidential
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