TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 55

UNITED KINGDOM MISSION

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37-39 rue de Vermont, 1202 Geneva

Telex: 22956

Telegrams: Prodrome, Geneva

Telephone: 34.38.00, 33.23.85 27 October 1972

CiVA 1415

89

CONFIDENTIAL

Miss J Elliott

CRE 1

Department of Trade and Industry

1 Victoria Street

London SW1

LAST

2

NEXT

REF.

(2) १०

felt تکاما

معة

letter

기쓰

HONG KONG'S FUTURE STATUS IN GATT

1.

Thank you for your letter of 11 October instructing us to discuss with the GATT Secretariat on a confidential basis the possibility of the "two flags" solution to the problem of Hong Kong's representation in the GATT after 1 January 1973. Gerry Pearson and I called on Patterson of the Secretariat this morning, having given him warning of the subject we wanted to raise but not of the solution we had in mind. Gerry Pearson spoke in the terms of the speaking note which I enclose.

2. It seemed clear that Patterson had been giving some thought to this question; he seemed to see all the implications of our proposal once the had been confirmed that there would be no change in the relationship between the United Kingdom and Hong Kong in regard to Hong Kong's external relations and commercial policy. This was the nearest he got to mentioning the possibility of a declaration of defacto autonomy under Article XXVI: 5(c). Patterson said that in his view the essential points were that the UK would retain full rights to speak for Hong Kong in the GATT: no Contracting Party could object to this, much less the EAC as such, not being a Contracting Party. Therefore there could be no GATT objection to the UK Delegation putting a Hong Kong view which conflicted with an EEC position. Since as far as the GATT was concerned the situation would be unchanged, the problem was purely "optical and presentational".

At first sight, he saw no great difficulties in the United Kingdom having two flags, one marked "United Kingdom (Hong Kong)" though he would wish to take a few days to consult other experienced members of the Secretariat, particularly with regard to possible relevant precedents and in case anybody could think of other possible ways of meeting the problem. He was assuming, however, that the spokesman for Hong Kong would sit with the rest of the UK Delegation or at least very close to them - possibly at the end of and slightly separate from the line of EEC Delegations. thought that it would be much more difficult and probably unacceptable to other GATT members to have the Hong Kong member of the UK Delegation sitting elsewhere in the room behind a separate flag. This would be "very messy presentationally".

/3.

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