TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 44

From:

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Roy Williams, Deputy Secretary

DEPARTMENT OF TRADE AND INDUSTRY

1 VICTORIA STREET

LONDON SWIH OET

H K 1 040224

Telephone (Direct dialling) 01-215) 5317

GTN

(Switchboard)

215)

215 7877

23 MAY 1935

74

*

RQ Braithwaite Esq CMG Foreign and Commonwealth Office London SW1A 2AH

Den Dram

Armen

16 May 1985

502

Mr Warren

where are

VISIT OF HONG KONG SECRETARY FOR TRADE AND INDUSTRY

Many thanks for letting me know about your discussion with Eric Ho on 9 May. He may have mentioned that he had earlier called in on me, and then went on to see Paul Channon.

we on * ?

feed

Ho's call was on the same day as the MFA debate in the Commons, so I was able to give him a preview of what Paul Channon would be saying. He was not dissatisfied, and said it was better than he had expected. I wish I had asked him not to say so in public (as he has done), since praise from Hong Kong is something we can do without, with the UK industry undecided whether to applaud or complain.

One interesting thing that Ho mentioned to me was that Hong Kong was investigating buying panels from the EC for stitching together into garments in Hong Kong for export to US. Under the new US origin rules the garments would be regarded as having EC origin (as garments made from Chinese panels are regarded as of Chinese origin). I expect that such an operation would be pretty uneconomic, but it would have a lot of nuisance value in demonstrating how the US controls, and the "gentleman's agreement" between the US and the EC, discriminate against developing countries. We do not want to stir that particular pot.

Ho also urged me to make progress on giving Hong Kong independent status in GATT. This echoed what the Governor said when he called a few weeks ago. We are all agreed on the need to avoid the question of Hong Kong GATT membership getting mixed up with Chinese membership. I have asked my people for an update on where we are, and where we are going. But my instinctive feeling is that the sooner this is out of the way the better.

I am copying this letter to the recipients of yours.

cc Mr Lane, ITP

Mr Hall, ITP3 Mr Pryor, ITP1

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