TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 66

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Department of Trade and Industry

Commercial Relations and Exports

1 Victoria Street London SW1H OET

Telex 27366 Answer Back DTIHQ London

Telegrams Advantage London SW1

16/10

CAT

Telephone 01-222 7877 ext

Your reference

Mr Croydon Lover1/03/10

& EID

ok.

PA. Rushi 11x

2

16.

13

DC Hartridge Esq

GENEVA

United Kingdom Mission

Our reference

DN

Date

7 No.51

&

CONFIDENTIAL

BY DIPLOMATIC BAG

October 1972

i

HKX6/8

#EF.

89

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We have now discussed with a Hong Kong delegation, led by Philip Haddon-Cave, the question of Hong Kong's status in GATT and its relationship with the Community following UK accession. This discussion, of which I enclose a short record by the PCO, was based on the draft Working Paper which had been sent to Hong Kong and of which you have a copy.

2.

The discussion centred round the alternatives set out in para 8 of the paper. You will see that we agreed that for both the UK and Hong Kong the possibility set out in 8(iv) would be the most satisfactory and raise the fewest problems.

3. The next stage is therefore to try and get agreement to this proposal from both GATT and EEC. Tactically, the best way to proceed seems to us to be for the UK Mission in Geneva to sound the GATT Secretariat informally, in whatever way and at whatever level seems best to you, on their reactions. We have not yet raised the matter with the Commission, and you should there- fore ask the Secretariat to treat our enquiries as strictly confidential. If the Secretariat do not seem likely to raise serious difficulties, then we would propose to ask the UK delegation in Brussels to say to the Commission that we propose that Hong Kong's affairs in GATT should be handled in this way; we do not want to give the Community an opportunity to comment on our discarded proposals as well as our preferred, though they may of course rai se some of them themselves.

4. We know from your very helpful letter of 27 July that you are doubtful whether GATT would wear such an arrangement, for which there are no precedents. If it is the question of precedents which is likely to worry the Secretariat, we suggest you should emphasise the unique position of Hong Kong, as a dependent colonial territory which is never likely to emerge as a fully independent nation,

It would which yet has major international trading interests in its own right. also be as well to play down as far as possible the precedent-creating aspects of the proposal, and to present it as a practical solution to a practical problem. I do not know whether any formal decision of the Contracting Parties would be called for, but I do not see why it should. Perhaps this question could be put to the Secretariat in terms expecting the answer "No".

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