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DIEU-E
Uruguay Round
5.
Hong Kong's top priority was textiles. Lo had heard that the US textile industry was planning to unravel the package aiming to extend to 15 years (from 10) the phasing out of the Multi-Fibre Agreement and to strengthen the Dunkel text on anti-dumping and anti-circumvention.
IPA (Investment Protection Agreement)
6.
Negotiations between Hong Kong and the US on IPA were in a log jam. It was in the interest of both sides to have one which straddled 1997 (there are 900 American firms with investments in Hong Kong, representing about $8 billion). But the U.S were insisting on
negotiating on the basis of their model text rather than the Hong Kong model agreement which had been cleared with the Chinese. The U.S wanted tighter provisions on compensation (notably for nationalisation) and an intellectual property rights agreement. Lo was not optimistic that the Chinese would agree to the US approach.
Extraterritoriality
7.
Lo said he did not involve himself directly in problems involving U.S extraterritorial actions affecting Hong Kong.
COCOM
8.
Lo confirmed that Hong Kong had convinced the U.S of the effectiveness of Hong Kong export control systems, and that U.S export control regulations had subsequently been amended in Hong Kong's favour.
William Marsden
ever,
Yous Alinall
Me Minister (Trade Policy)
CC
PS
Minister
Head of Chancery BTC, Hong Kong
PF Ricketts, HK Dept, FCO
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