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12 JUL 1993

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6 July 1993

By Fax

J M Macgregor Esq

ECD (E)

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United Kingdom

Permanent Representation

To the European Communities

Rond-Point Robert Schuman 6

1040 Brussels

Telephone: (02) 287 82 11

Telex: 24312

Facsimile: (02) 287 83 98

DID: (02)287-8248

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21 JUL 1993

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Dear John,

EC DELEGATION OFFICE IN HONG KONG

Jm. 177

1 We discussed this in your office on 5 July. I told you of my impression that the negotiation between the Commission and the Hong Kong authorities was not moving forward, and risked running into the sand. We thought that it might soon be appropriate to consult Ministers.

My letter of 7 April 2. You will recall the recent history. reported the progress made during the Governor's visit to Brussels on 1/2 April. The Governor followed this up with his letter of 29 April to Delors. Since then I have done my best to stay in touch with the Commission and the HKETO, and to urge both But progress has been to give the issue a higher priority. hampered by the transfer of responsibility for the subject within the Commission to DGIA and by absences of senior officers in the HKETO (Patrick Williamson, the head of the office, is now away until mid-August).

3. I now enclose a copy of Delors' reply to the Governor's letter of 29 April. Sir L Brittan was due to deliver this to Mr Patten at their meeting in Hong Kong on 4 July (though the HKETO was unable to confirm to me today that this had happened). I am afraid that the terms of Delors' reply are not encouraging. It shows little recognition of the constraints under which the the careful Hong Kong authorities

operating, despite explanations that the Hong Kong side have given over the last year. In particular the letter continues to demand the full range of privileges and immunities comparable to those enjoyed by Commission delegations in capitals elsewhere in the world, without taking account of the differences arising from the particular status of Hong Kong.

are

4. However, I do not think that the letter closes the door on a pragmatic solution. Although it refers to the issues of the Commission's

international

status and

to

the

post-1997

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