Issue

4

-

CONFIDENTIAL

Objective/explanation

Present status/progress

China

interest*

UK

interest*

Secretary for Trade and Industry

Asian Pacific

Economic

Cooperation (APEC)

: Hong Kong's participation

Partly because of the "China complication" and partly because of ASEAN'S reluctance to see a dilution of ASEAN influence, Hong Kong was not invited to the inaugural Ministerial meeting of APEC held in Canberra on 6-7 November 1989. At the Canberra Ministerial, it was felt that the participation of Hong Kong, China and Taiwan should be addressed in the next Ministerial to be held in Singapore in mid-1990. The Hong Kong Government has all along indicated a clear interest in joining APEC, given its status and active role on the GATT, its importance as a separate economic entity and as an integral party of the regional economy and the fact that Hong Kong's participation would be well within Hong Kong's commercial autonomy enshrined in the

Sino-British Joint

Declaration on Hong Kong's Future.

The participation of Hong Kong, China and Taiwan was discussed at the Second Senior Official's Meeting of APEC held in Singapore on 21-22 May 1990. The consensus was that the three economies should be admitted at the same time but there was no consensus as to the timing and modalities for admission. there appears to be a general consensus that China should not have a veto over Hong Kong's participation, but no one is prepared to contemplate dealing with the three separately. Moreover, the Singaporeans are reluctant to bring the issue to a head at the Ministerial to be held in Singapore in July 1990. Continued lobbying by Hong Kong will be necessary.

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