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012652
MDHIAN 1618
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FM WASHINGTON
TO IMMEDIATE FCO
TELNO 2120
OF 08230OZ AUGUST 89
INFO IMMEDIATE HONG KONG, CANBERRA
INFO PRIORITY TOKYO, SEOUL, KUALA LUMPUR, SINGAPORE, BANGKOK INFO PRIORITY JAKARTA, MANILA, BANDAR SERI BEGAWAN, OTTAWA INFO PRIORITY PEKING, WELLINGTON
YOUR TELNO 574 TO CANBERRA: ASIA/PACIFIC ECONOMIC FORUM CAPEF):
HONG KONG
SUMMARY
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ACTION TAKEN WITH STATE AND NSC. REASONABLY ENCOURAGING FIRST
REACTIONS. DETAIL
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MINISTER (COMMERCIAL) TOOK THE OPPORTUNITY OF A CALL TODAY (8 AUGUST) ON MCALLISTER (ASSISTANT SECRETARY FOR ECONOMIC AND BUSINESS AFFAIRS IN STATE DEPARTMENT) ON OTHER BUSINESS TO MAKE THE POINTS IN TUR. HE LEFT A NOTE BASED ON PARAGRAPHS 3(I)-(IV).
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MCALLISTER, WHO IS LEADING ON THIS SUBJECT IN STATE, REACTED POSITIVELY AND SAID THAT THERE WAS NOTHING IN OUR REPRESENTATIONS WITH WHICH HE WOULD DISAGREE. IT WAS CLEAR THAT HONG KONG WAS THE
RIGHT PLAYER FOR THIS KIND OF MEETING. HE WOULD DRAW BAKER'S ATTENTION TO OUR COMMENTS.
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MCALLISTER ASKED WHETHER WE KNEW WHAT BEIJING'S VIEW WAS OF
HONG KONG PARTICIPATION. MINISTER (COMMERCIAL) SAID THAT THERE HAD BEEN EXCHANGES WITH PRC REPRESENTATIVES. THEY SEEMED TO THINK THAT THE FORUM WAS AN OCCASION FOR QUOTE SOVEREIGN GOVERNMENTS UNQUOTE ONLY. BUT THIS WAS NOT THE POINT. THE 1984 JOINT DECLARATION HAD CONFIRMED HONG KONG'S AUTONOMY IN EXTERNAL TRADE AND ECONOMIC MATTERS: THUS ITS MEMBERSHIP OF THE GATT. HONG KONG'S PARTICIPATION IN THE FORUM WOULD BE ENTIRELY CONSISTENT WITH THIS AUTONOMY. MCALLISTER AGREED.
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MINISTER (COMMERCIAL) LATER SPOKE TO HOFFMAN (NSC). HE WAS MORE GUARDED IN HIS RESPONSE THAN MCALLISTER. THE PROBLEM WAS A QUOTE TOUGH ONE UNQUOTE BECAUSE IT IN TURN DEPENDED ON WHAT WAS TO BE DONE WITH TAIWAN, AND THE ADMINISTRATION HAD NOT YET MADE UP ITS MIND. NONETHELESS, HOFFMAN ACKNOWLEDGED THAT OUR ARGUMENT HAD THE QUOTE MERIT OF STRONG LOGIC UNQUOTE. HE WOULD DISCUSS THE MATTER FURTHER WITH MCALLISTER WHOM HE WAS SEEING ON 9 AUGUST ANYWAY WITH A VIEW TO AGREEING A JOINT RECOMMENDATION.
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WE ALSO RAN THROUGH THE POINTS IN TUR WITH THE CHINA OFFICE IN
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