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Secretariat would then advise the other contracting
Such
parties accordingly. The main constituents of
would enable Hong Kong to licke
autonomy/pace freedom to decide and
independent-
tariff
retaliatory action ciganitis any member of "EE.C. who policy and to set angis own quantitative import discrimimated agamot her.
-restrictions.
3. When this possibility was raised at recent talks
with Hong Kong Government officials, they felt that
the risk of strong Chinese reaction, on the grounds
that this was another attempt to make Hong Kong a
JU
country, was so great as to preclude its adoption.
You will recall that when the possibility of similar
Chinese reaction to Hong Kong membership of the Asian
Development Bank was considered earlier this year, the
Arthur Foreign Office view, as expressed in May de la Mare's
unreferenced letter of 8 May to r Arthur Galsworthy,
was that, although it was a possibility, it should
not be taken so seriously as to sway the Hong Kong
Government against joining the Bank if other
considerations were in favour of their doing so.
The present situation may make a violent
Chinese reaction more likely and more dangerous,
al though the G.A.T.T. is possibly less offensive in
Chinese eyes than the Asian Development Bank. But
it would be unfortunate if fears of China were
us from
needlessly to discourage, the pursuing off
a course
which is attractive on economic grounds and should
therefore be grateful to have your views on the likely
Chinese reaction and on the extent to which it should
inhibit the proposed course.
W
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