TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 24

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CONFIDENTIAL

HKK040/24

RECEIVED IN

CONFIDENTIAL

- 2 JUL 1985

FM HONG KONG 240940Z MAY 85

TO IMMEDIATE F C O

TELEGRAM NUMBER 1000 OF 24 MAY

INFO IMMEDIATE PEKING

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GASLWORTHY'S TELNO 714! HONG KONG AND THE GATT

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HAVING CONSULTED BURROWS WE SEE NO NEED FOR ANY CHANGE IN THE LETTERS PATENT TO ENABLE US TO ACT IN INTERNATIONAL AFFAIRS. GIVEN CHINESE SENSITIVITY TO ANY FUNDAMENTAL CHANGE TO OUR CONSTITUTION AND THE FACT THAT IT HAS BEEN REPRESENTED TO THE CHINESE THAT WE ENJOY UNDERLINE NEXT TWO WORDS DE FACTO AUTONOMY IN THE CONDUCT OF OUR EXTERNAL COMMERCIAL RELATIONS, ANY SUCH CONSTITUTIONAL CHANGE WOULD ALSO BE INAPPROPRIATE AND UNDESIRABLE.

2. WHILE FCO TELNO 580 OF 29 AUGUST 1969 IS A FORMAL DELEGATION

TO HONG KONG IN THE FIELD OF TEXTILES ONLY, YOU WILL BE AWARE

THAT WITH UNITED KINGDOM ACCESSION TO THE EUROPEAN COMMUNITY, HONG KONG HAS NOT, IN FACT, BEEN REQUIRED TO CONSULT, MUCH LESS COORDINATE, IT'S LINE ON GATT MATTERS WITH YOU. THIS IS THE SUBSTANCE OF THE UNDERLINE NEXT TWO WORDS DE FACTO AUTONOMY WE ENJOY IN THE

CONDUCT OF OUR EXTERNAL COMMERCIAL RELATIONS.

3. HOWEVER WE WOULD WELCOME FORMAL ENTRUSTMENT TO HONG KONG BY WAY OF A CONFIDENTIAL ADMINISTRATIVE ARRANGEMENT TO SUBSUME THE EXISTING POSITION IN THE PRECEDING PARAGRAPH. THIS ENTRUSTMENT SHOULD FOLLOW CLOSELY THE LANGUAGE OF ART. XXVI 5(C) OF THE GATT AND ENTRUST TO HONG KONG THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS AND OF THE OTHER MATTERS PROVIDED FOR IN THE GATT AND THE CCC. ALTHOUGH TELNO 580 OF 1969 WAS MADE KNOWN TO THE TEXTILES ADVISORY BOARD AND EXECUTIVE COUNCIL, IT WAS NOT SHOWN TO ANY THIRD PARTY. ACCORDINGLY THIS NEW FORMAL ENTRUSTMENT SHOULD LIKEWISE NOT BE SHOWN TO THE CHINESE OR TO THE GATT SECRETARIAT. ALL THEY

NEED SEE WOULD BE THE DECLARATIONS SET OUT IN GALSWORTHY'S TELELETTER HKK 040/24 TO BOYD OF 22.4.1985 WHEN AGREED.

4. AS REGARDS THESE DECLARATIONS, FURTHER TO PARA 1 OF OUR TELNO 394 OF 11 MAY, WE CONSIDER, ON REFLECTION, THAT WE SHOULD NOT ACCEPT THE FIRST AMENDMENT IN PARAGRAPH 3(A) OF DAME ANNE WARBURTON'S TELELETTER OF 3 MAY. WE ARE ADVISED THAT UNDER ARTICLE XXVI (5) (C)

CONTIDENTIAL

HONGY