TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 153

ONEL AVISAN

DSR 11C

by

to an extent by the availability of funds and the

nature of a command economy. Of course Chinese economic

plans tend to be gnomic, and it is hard to be

authoritative about the future pattern of Chinese trade.

But it is worth remembering that Chinese accession would

bring opportunities as well as risks.

3. Your paper rightly addresses the ways in which other

night

Contracting Parties to the GATT may be able to safeguard

themselves against the strains that the

inclusion of a

would be able t

state-trading economy of China's size and potential might

impose on the open trading system. I am indeed persuaded

by your argument that there would be a sound legal case

for refusing to tolerate Chinese entry by simply taking

up the Chinese seat left vacant in 1950. I further agree

with your thesis that we should be thinking in terms of a

special and selective safeguard clause, perhaps qualified

by a specific Chinese commitment to increase

progressively the level of imports. In this way, we may

turn the fact that the Chinese government at present

imports nothing that it has not specifically decided to

purchase from abroad, to our advantage, as well as by

building into the system progressive increases in import

levels, exploit the inevitable growth of consumer choice

and market orientation that must accompany the

development of an economy attuned more to incentive than

direction.

4. Of course there will be no guarantee that the trading

relationship will flourish satisfactorily. But there is

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