TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 112

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own right, rather than in her present GATT relationship

to the 'metropolitan power') whether China itself was a

contracting party or not. Even were China not to

accede to the GATT, we believe that if it had

previously made a statement to the effect that Hong

Kong would, after 1997, continue to be a customs

territory which possessed full autonomy in the conduct

of its external economic relations, and that China

supported the retention after 1997 by Hong Kong of its

position in relation to the GATT, this should do the

trick. But in any circumstances, Chinese goodwill and

cooperation would be necessary. There would need to be

close coordination between the British and Chinese

Governments over public statements, over approaches to

the GATT Secretariat and over the lobbying of other

contracting parties.

9.

-

This goodwill and cooperation would be jeopardized

if we were to be among those opposing. let alone

preventing

Chinese accession to the GATT.

Although

Chinese obstructionism over Hong Kong's future

relationship with the GATT might be technically in

breach of the Hong Kong Agreement, it could easily be

camouflaged and we would have a hard task in seeking to

enforce the letter of the Agreement in this respect.

It is of vital importance that Hong Kong's trading

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