ec.hk.dbj

CODE 18-77

CONFIDENTIAL

Miss Brooks, Legal Advisers

HONG KONG:

IN

EUROPEAN COMMISSION OFFICE

(19)

Reference.

file

HILD 406/5

2 4 FEB 1993

1. You will have seen FCO telno 59 to UKREP Brussels on this subject.

2. We have been encouraging the EC, for some years, to set up shop in Hong Kong. They are now discussing with HKG and with UKREP Brussels the question of privileges and immunities. Mr Patten will visit Brussels in April - added reason to find a way forward as fast as is consistent with getting it right.

3.

They are asking for a package which would far exceed what is available at present under existing Hong Kong law and for more than is now accorded to consular delegations (including eg the French) in Hong Kong. They want us to speak to the Chinese to secure the continuation of these privileges post 1997. (We did in fact inform the Chinese briefly at the JLG last September that the EC wished to open an office in Hong Kong as soon as possible; the Chinese asked to be kept informed and we agreed to do so). All this raises obvious problems of both practical and political nature. At this stage I want to establish what privileges and immunities it would be reasonable to seek for the Commission and what sort of legislation would be needed to do the trick if, as seems to be the case, these are beyond the scope of the relevant Hong Kong Ordinance, Cap 190.

4. I am copying (to you only) our back papers on this (list of papers attached to this minute; if copy addressees would like to see any of these, please contact Miss Bliss). I see from the files that you were consulted earlier in the debate (last July) over the drafting of FCO telno 1055 to Hong Kong.

5. It seems to me that we shall need to take account of the following considerations in deciding how to proceed;

- need to ensure that Commission difficulties with Hong Kong over the Delegation do not complicate our dealings with China over wider issues of Hong Kong's future.

need to ensure appropriate status for EC both before and after 1997 (bearing in mind the advantages for Hong Kong trade and for international status that hosting EC representation brings).

- need to ensure that the Commission does not exaggerate its international status beyond what the UK as a member state considers appropriate.

- need to consider the implications of acceding to EC wishes,

CONFIDENTIAL

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