TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 21

81

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any formaal

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Micers

GRS 300

CONFIDENTIAL

RAC

AKK040/24

3 1 MAY 1985

CONFIDENTIAL

FM PEKING 300820Z MAY 85

TO IMMEDIATE FCO

TOP COPY

TELEGRAM NUMBER 873 OF 30 MAY.

INFO IMMEDIATE HONG KONG

71

77

YOUR TELNO 716 AND HONG KONG TELNO 1000: HONG KONG AND THE GATT

1. WE HAVE SOME RESERVATIONS ABOUT THE SUGGESTION IN PARAGRAPH 3 OF HONG KONG TUR THAT THE CHINESE SHOULD NOT BE SHOWN ANY FORMAL INSTRUMENT OF ENTRUSTMENT (SHOULD THIS BE MADE BY HMG) IF THE IMPLICATION IS THAT THE CHINESE SHOULD NOT BE ADVISED OF THE EXISTENCE OF SUCH AN INSTRUMENT. WE THINK IT QUITE POSSIBLE THAT THE CHINESE, WHEN APPRAISED OF CUR PROPOSAL ON THE MODALITIES OF ACHIEVING SEPARATE CP STATUS FOR HONG KONG IN THE GATT, WILL THEM- SELVES POINT TO THE DIFFERENCE BETWEEN THE WAY HONG KONG IN PRACTICE GOVERNS ITS AFFAIRS AND THE DEJURE CONSTITUTIONAL SITUATION (PARAGRAPH 1 OF YOUR TUR). WE SEE NO NEED TO SHOW THE CHINESE THE TEXT OF AN INSTRUMENT OF ENTRUSTMENT. HOWEVER, AS SEEN FROM HERE, THERE WOULD BE LITTLE ADVANTAGE IN CONCEALING FROM THE CHINESE THE FACT THAT WE HAD CONSTITUTIONALLY FORMALIZED THE SYSTEM WHICH OPERATES IN PRACTICE. SHOULD AN INSTRUMENT OF ENTRUSTMENT BE MADE, THE CHINESE WOULD BE LIKELY TO LEARN OF ITS EXISTENCE. SHOULD WE SEEK TO CONCEAL THIS FACT FROM THEM, THE CHINESE COULD WLL ARGUE THAT WE HAD ACTED IN BAD FAITH IN NOT INFORMING THEM OF THIS IMPORTANT FORMAL CHANGE TO HONG KONG'S SITUATION IN THE TRANSITIONAL PERIOD. ANY RESIDUAL CHINESE SUSPICIONS OF OUR MOTIVES OVER HONG KONG'S GATT STATUS IN PARTICULAR AND CUR ATTITUDE TO THE JLG'S WORK MORE GENERALLY WOULD BE LIKELY TO BE FUELED. THE CONSEQUENCES OF THIS COULD BE TO MAKE DISCUSSION OF HONG KONG'S GATT STATUS MORE DIFFICULT AND POSSIBLY PREJUDICE OUR CHANGES OF ACHIEVING THE OUTCOME WE ARE SEEKING.

EVANS

HONG KONG AGREEMENT: NATIONALITY.

LIMITED

COPIES TO:

MR ROBERTS, NEWS DEPT.

MR GRAINGER, LEGAL ADVISERS

RESEARCH DEPT.(MR WALKER)

MR HYDE, HOME OFFICE

HD/HKD

HD/FED HD/NTD

PS

PS/MR LUCE

PS/LADY YOUNG

PS/PUS

SIR W HARDING

MR WILSON

MR NICHOLSON, PASSPORT DEPT, HOME'

OFFICE.

MR EMERY, B4 DIV, HOME OFFICE,

CROYDON.

Mr Miller, MVD

CONTIDENTIAL