TNAG-1391-FCO40-1863-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 104

HONG KONG

BACKGROUND

CONFIDENTIAL

THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED FOR

40 YEARS UNDER FOI EXEMPTION No...270)

In Zhou Nan's absence PUS will not as at

Chinese officials responsible for Hong Kong,

1.

present be calling on

and we see no advantage

in his raising Hong Kong points with Qian Qichen or Huan Xiang.

It is possible that the PUS will meet other officials more directly concerned on social occasions.

2. Ratification of the Hong Kong agreement took place on 27 May. Instruments exchanged in Peking. Agreement entered into force on

that date.

3.

First meeting of Joint Liaison Group will be in London between

22 and 25 July. Main subject on agenda will be Hong Kong and the

GATT. We have undertaken to submit to the Chinese prior to the

first meeting a paper of proposals on how to secure Hong Kong's continued participation after 1997. The paper will propose an early declaration by the UK to the GATT (supported by Hong Kong and if

possible by China) to the effect that Hong Kong enjoys autonomy in

the conduct of her external commercial relations and should be deemed to be a separate Contracting Party with immediate effect. The Chinese have told us that they will not create any difficulties

for us over the GATT. But just possible that they could argue for Hong Kong to participate in the GATT after 1997 under a Chinese umbrella (assuming China has joined the GATT by then) rather than as a separate Contracting Party.

4.

•

Chinese National People's Congress decided in April to establish a Basic Law drafting committee which will include "personages and specialists from all walks of life including Hong Kong compatriots". Names likely to be announced soon. The Director of the Hong Kong branch of the New China News Agency told the Governor in May that members of UMELCO and the Hong Kong judiciary will be included.

This is welcome.

CONFIDENTIAL