TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 51

CONFIDENTIAL

UNITED KINGDOM MISSION 37-39 rue de Vermont, 1202 GENEVA Telex: 22956

Telegrams: Prodrome, Geneva Telephone: 34.38.00, 33.23.85

3 November 1972

92

Miss JE Elliott

CRE 1

Department of Trade and Industry,

1 Victoria Street

London SW1

89

R

N51

Joe

شه

!

9.8

3

8

HONG KONG AND THE GATT

NKK6/8

1 Gerry Pearson learned yesterday from Gardner Patterson, that the negative reaction of the Secretariat to the "two flags" solution which we proposed (reported in our telegram No 608 of 31 October) is in fact a reflection of Long's own view.

We get the impression that Patterson's initial and more favourable view, as reported in my letter to you of 27 October, persisted until he discussed the question with Long.

in

2 It is not really surprising that Mr Long should react in a cautious and legalistic way; that is his nature. It may well be that he would see problems, on behalf of other Contracting Parties, that most of them would never see for themselves other words, that the members of the GATT would take a more favourable view than the Secretariat. In talking to Gerry Pearson, Patterson said that the Secretariat's main concern was the precedent that the "two flags" would set for other countries having dependent territories, but it was clear that he had no particular case in

mind.

3 We have been thinking about what to do next, and the Ambassador's present thought is that it would be well for him to speak personally to Long, in the hope of persuading him that the danger of Hong Kong's losing effective representation in the GATT is more to be feared than setting a possibly troublesome precedent. Before doing so, he will want to talk the matter over with Guy Simmons and Eric Ho, who will be here next week for the Session. We should be grateful for any ideas that you and the other recipients of this letter might have, particularly as to new arguments which might be deployed, but in any case Guy Simmons, in particular, will want to be in the picture.

Copied to:

W Nicoll Esq, UKDEL EEC

M A Goodfellow Esq, FCO (HK & IO) G Simmons Esq, FCO (TPD)

D C Hartridge

J V Hagestadt Esq, CRE 3 Miss C R Welch, CRE Miss C R Welch, CRE