TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 161

布政司署

港下亞厘畢道

**** OUR REF.: CR LM 72/85

YOUR REF.:

RESTRICTED

31

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

J. A. Shepherd Esq.,

Minte

ELD (E)

European Community Dept. (External),

FCO

My sex-form.

New GATT round

9 April, 1985

Jan penite

རྟེན་ན:

оп

154

Ron pee on 15

H.KK 040/24

16 APR 1985

Many thanks for a sight of your circular letter of 26 February enclosing the DTI paper on the new GATT round. This has been read with interest in Hong Kong.

2.

In

We have however an important local grumble. paragraph 6 of the paper, on the developing countries, Hong Kong is listed with the NICs. This is fair enough, but the paragraph goes on to deal with the behaviour of the developing countries, in particular their protectionist behaviour, without distinction. All but the most sophisticated readers will naturally assume that Hong Kong, along with the rest, has "benefited from Tariff and other concessions made by the developed world", while "doing too little to liberalise access to its own markets". It also reads as if Hong Kong is one of those indulging in protectionist tariffs, import licensing procedures etc. If you think this comment hypersensitive then look at the remarks on the NICS as such in para 15 (b).

3.

I do not need to point out to you that Hong Kong is just about the only genuine free market economy in the world. Its record is far better than that of e.g. the Community. We are among the five GATT members that apply GATT rules without exception. Hence, frankly, our success.

4.

We should find it helpful if you were prepared to circulate a small amendment to your paper on the following lines:

"The Political Adviser Hong Kong has asked me to amend the paper enclosed with my letter of 26 February as follows:

/Para 6