SECURITY CLASSIFICATION

Top Secret

Secret

Confidential

Restricted

Unclassified

PRIVACY MARKING

In Confidence

DSR 11C (Revised 5/87)

We would of course be criticised for entering a

reservation on behalf of Hong Kong by those who favour an

immediate ban. But I believe we could argue successfully

that our action was reasonable and fair, and indeed a

necessary interim step towards total compliance by Hong

Kong with the ban. We might also point out that there is

a long established tradition of the Government acting on

behalf of Hong Kong in international fora where Hong Kong

has no independent voice (eg in the GATT before Hong Kong

became a party in its own right). It is our duty to look

after the territory's interests in such cases.

I should be grateful for confirmation that you would

be content for a reservation to be entered in accordance

with the procedure outline above. I would like to make

our intentions known in Hong Kong as soon as possible.

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