RESTRICTED
Nonetheless Mr Haddon-Cave thought this would be a useful fallback position if the GATT objected to (i).
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(iii) In Mr Haddon-Cave's view this was very much less acceptable than either (iv) and (ii) above for political reasons. He thought that there might well be Chinese objection to the recognition in the GATT of Hong Kong's economic autonomy. The risk of becoming locked in with the Chinese on this was too great to be embarked upon without very serious consideration. Mr Sinclair said there might be a question whether Hong Kong could be sponsored under Article XXVI 5(c) since GATT practice clearly indicated that this method would only be applicable for a country approaching independence.
(i) This, Mr Haddon-Cave thought, could not be considered under any circumstances since, as the paper pointed out, it would mean the stifling of Hong Kong's views.
3. There was little discussion and it was generally agreed that the UK concurred entirely with Mr Haddon- Cave's arguments, and also preferred this order of precedence.
4.
It was agreed that DTI would send a letter to the UK Mission in Geneva asking them to sound out the GATT in whatever way they thought appropriate. If the GATT agreed then we should inform the EEC Commission of the arrangements we had reached, as advised by Mr Nicholl in Brussels.
5.
Finally, Mr Haddon-Cave asked that thought be given to the best means of ensuring the continuance of close and frequent consultation after Accession between Hong Kong and Whitehall on trade matters. It was for consideration, for example, whether Hong Kong should strengthen, her existing office in London. Miss Elliott pointed out that Hong Kong's voice in GATT would be strengthened if option 8(iv) in the enclosure to Mr Laidler's letter were adopted. It was agreed that Mr Haddon-Cave's point should be borne in mind in the light of future experience.
M A Goodfellow
Hong Kong & Indian Ocean Dept
11 October 1972
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