TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 186

CONFIDENTIAL

(c)

4.

that the Chinese might object to such a declaration. It could give the impression that Hong Kong was an independent third party. As this is a matter about which the Chinese are particularly sensitive, we would be prepared to drop the idea of a Hong Kong declaration if it seemed likely to cause difficulty.

In view of our very different views as to sovereignty over Hong Kong, we think it might be difficult to get the PRC to refer expressly to the terms of our declaration under Article XXVI(5)(C). We must therefore draft in language which is effective for GATT purposes, is consistent with the language of the Joint Declaration and is also neutral with regard to the sovereignty issue.

I should welcome your early comments. We should like to give Hong Kong a concerted London view on all the points raised in Dame Anne Warburton's teleletter as soon as possible.

5. I note what you say about Chinese participation in the GATT. We have now received a copy of Tony Lane's letter of 27 March to Mr Renwick enclosing the DTI paper on this subject. We shall ensure that our views are reflected in the reply to that letter.

yous

Simundy Engi

JSC Priest (Mrs)

Hong Kong Department

vies

cc: Mr Burrows, Legal Advisers

Mr Warren, ECD(E)

CONFIDENTIAL