yes./
6. THE CHINESE DELCARATION, ALTHOUGH LEGALLY NOT STRICTLY NECESSARY, WOULD INTER ALIA (LAST TWO WORDS UNDERLINED) HELP
TO SETTLE ANY DOUBTS FROM OTHER CPS AND REDUCE THE POSSIBILITY
FOR CHINESE BACKSLIDING IN THE FUTURE. IT COULD BE CONFIRMED BY CHINA IN 1997 - BUT THIS WOULD BE A LUXURY.
7
FOR IT WOULD NOT BE NECESSARY FOR INDEED APPROPRIATE CHINA TO TAKE ADDITIONAL ACTION UNDER ARTICLE XXXIII AFTER 1997. SUCH ACTION WOULD APPEAR TO HAVE SEVERAL DISADVANTAGES. FIRST, ALTHOUGH IT APPEARS TO US POSSIBLE FOR CHINA TO TAKE ACTION -EVEN IF NON-CP - THERE WOULD BE NO PRECEDENT FOR THIS AND THE POINT MIGHT BE DISPUTED. SECOND, CHINA COULD NOT ACT UNTIL AFTER 1997, THUS PERPETUATING THE DOUBTS CONCERNING HONG KONG'S EVENTUAL STATUS. THIRD, THE MATTER WOULD HAVE TO BE DECIDED BY TWO-THIRDS MAJORITY OF THE CPS. WHICH COULD GIVE RISE TO DIFFICULTIES.
8. AS INDICATED IN PARA 4 ABOVE, WE CANNOT RULE OUT THE POSSIBILITY THAT AT THE END OF THE DAY THE CHINESE MIGHT RENEGE UPON THE UNDERSTANDINGS AND SEEK TO WITHDRAW AUTONOMY. BUT WE ASSUME THAT THERE WOULD BE STRONG DISINCENTIVES TO DOING SO. PROBABLY THE ONLY GATT PRECEDENT IS THE UK WITHDRAWAL IN RESPECT OF RHODESIA IN 1974. (RHODESIA DID NOT DISPUTE THE MATTER NOR SEND A REPRESENTATIVE TO GATT DURING UDI BUT THE SECRETARIAT, REFLECTING THE UNCLEAR LEGAL POSITION, CONTINUED TO ALLOCATE TO RHODESIA DOCUMENTS WHICH WERE NEVER COLLECTED.)
9. AS FAR AS THE MTN CODES ARE CONCERNED, NO ACTION APPEARS TO BE REQUIRED OTHER THAT, PERHAPS A REFERENCE IN B) ABOVE TO HONG KONG'S DESIRE TO CONTINUE TO PARTICIPATE ON PRESENT
TO TERMS IN THE CODES (EXCLUDING BOVINE BEEF AND DAIRY, WHICH IT DOES NOT BELONG). THE GATT LEGAL ADVISER IS GIVING THE MATTER FURTHER CONSIDERATION AND WILL CONFIRM THIS VIEW.
10. AS FOR THE BUDGETARY IMPLICATIONS, THE SECRETARIAT WILL PROVIDE AN EXACT FIGURE SHORTLY BUT WE WOULD NOT EXPECT THE HONG KONG CONTRIBUTION TO EXCEED 1 MILLION SWISS FRANCS AT
1984 CONTRIBUTION RATES.
11. LOBBYING. (UNDERLINED) WE HAVE TAKEN ACTION WITH ARTHUR DUNKEL (DAVID MOSS'S LETTER OF 28 SEPTEMBER 1984). OUR EC
PARTNERS HAVE NOT RAISED THIS MATTER WITH US BUT WE HAVE KEPT PAUL TRAN ABREAST OF EVENTS.
capied to Bernow 14/3.
die
HONG KONG DERT. PLEASE COPY TO LEGAL ADVISERS.
EPT
SIGNED ....ANNE WARBURTON
CCN PARA 5 B) LINE TWO SHOULD READ BECOME A DE JURE (UNDERLINED) CP.
NNNNN
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