GR 350
CONFIDENTIAL
CONFIDENTIAL
FM HONG KONG 020842Z MAY 85
TO PRIORITY FCO
TELEGRAM NUMBER 837 OF 2 MAY
HKK 040/24!
!
INFO PRIORITY PEKING, UKMIS GENEVA, UKREP BRUSSELS, BRUSSELS (FOR JONES), WASHINGTON
INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON
لا
YOUR TELNO 600 (NOT COPIED TO ALL): HONG KONG, GATT AND CCC.
1. AT MIFT IS A DRAFT EXCO MEMORANDUM. THE ANNEX REFERRED TO AT PARA 15 THEREIN IS NOT ATTACHED AS IT MERELY REPEATS THE TEXTS REFERRED TO IN YOUR PARA 3.
2. AS REGARDS YOUR PARA 5, IF THE CHINESE WERE TO OBJECT IN JLG TO HONG KONG BECOMING A SEPARATE CONTRACTING PARTY TO GATT, OR TO DRAG THEIR FEET OVER THE ISSUE, IT WOULD PROBABLY BE DUE TO THEIR WISH TO :
(A) GET THEIR OWN MEMBERSHIP SORTED OUT FIRST: AND
(B) LIMIT AUTONOMY TO THE SAR.
Bee 544
3. APART FROM THE POINTS YOU HAVE MADE, WE MIGHT ALSO SAY THAT THE LOSS OF GATT RIGHTS BY THE SAR (ON THE BASIS THAT CHINA IS NOT CURRENTLY IN GATT) WOULD MEAN LOSS OF M.F.N. RIGHTS OF ACCESS FOR ITS GOODS. EVEN IF THE UNITED STATES, OUR MOST IMPORTANT MARKET, WAS PREPARED TO GRANT M.F.N. TARIFFS, THIS WOULD THEN BE SUBJECT TO AN ANNUAL RENEWAL OF SUCH CONCESSIONS. OTHER MARKETS WOULD NOT EVEN GRANT TARIFF CONCESSIONS. FURTHERMORE, HONG KONG GOODS COULD THEN BE SHUT OUT OF ANY OF ITS IMPORTANT MARKETS BY EXECUTIVE ACTION WITHOUT ANY MEANS OF REDRESS THROUGH GATT
PROCEDURES. THE LOSS OF GATT RIGHTS WAS THEN BOUND TO AFFECT INVESTMENT AND ECONOMIC VIABILITY, AND UNDERMINE THE FUTURE
PROSPERITY OF THE SAR.
4. AS THE JOINT DECLARATION HAS SETTLED THE QUESTION OF OUR FUTURE, AN ARTICLE XXVI (5)(C) DECLARATION CANNOT BE MISCONSTRUED BY CHINA. ACCORDINGLY, THERE WILL BE EVERY ADVANTAGE IN HMG PROPOSING TO PROCEED EVEN WITHOUT THE SUPPORTING CHINESE
DECLARATION.
HADDON-CAVE
MINIMAL
HKD FED ECDCE) NAD
COPIES TO
HKGO LONDON.
CONTIDENTIAL
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