TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 125

GRS 300

CONFIDENTIAL

DESKBY 2010JOZ

HKK040/240

RECEIVED IN, SCISTRY

2 JUL 1985 --

DESK OFFICER

REGISTRY

CONFIDENTIAL

INDEX

PA

Action Taken

Dene

wether

do me

FM HONG KONG 200355Z JUN 25

TO IMMEDIATE F C O

TELEGRAM NUMBER 1219 OF 20 JUNE

INFO IMMEDIATE PEKING, UKMIS GENEVA, HKSO GENEVA (FOR CARLAND).

UKREP BRUSSELS (FOR JONES), WASHINGTON.

123

12x

PEKING TELNO 943 AND UKMIS GENEVA TEL NO 237: GATT: HONG KONG'S

FUTURE STATUS.

1. WE ARE CONTENT WITH THE AMENDMENTS PROPOSED IN PARAGRAPHS 1(A), (B) AND (D) OF PEKING TUR. WE WOULD SUGGEST, HOWEVER, THAT THE

AMENDMENT PROPOSED IN PARAGRAPH 1(C) SHOULD END ... THE SAME

DEGREE OF AUTONOMY AS AT PRESENT IN THE CONDUCT OF ITS EXTERNAL

COMMERCIAL RELATIONS AND OF OTHER MATTERS PROVIDED FOR IN THE

GATT. THIS WILL ALLEVIATE ANY POSSIBLE CHINESE SUSPICIONS THAT WE

ARE ASKING THEM TO SIGN A BLANK CHEQUE. IN THIS INSTANCE WE ARE IN

FACT AIMING TO FREEZE THE POSITION AS AT THE TIME OF DEPOSIT OF UK

DECLARATION.

t t

2. ALL THIS PRESUPPOSES THAT THE PROPOSED DELEGATION OF AUTHORITY

TO THE HONG KONG GOVERNMENT IS MADE, OR AT LEAST AGREED IN PRINCIPLE, BEFORE THE JLG MEETING IN JULY. WE WOULD CERTAINLY HOPE THAT MINISTERS HAD BY THEN TAKEN A FIRM DECISION ON THE FORM IN WHICH IT WOULD BE MADE. GRATEFUL TO KNOW THE PRESENT POSITION.

3. WITH REGARD TO UKMIS GENEVA TUR, WE REMAIN UNCONVINCED THAT IT IS HELPFUL OR APPROPRIATE TO APPLY TO HONG KONG THE PRECISE PROCEDURES WORKED OUT FOR NEWLY INDEPENDENT STATES, WHICH IS NOT ENTIRELY IN ACCORDANCE WITH ARTICLE XXVI(V)(C) OF THE GATT AND COULD WELL CAUSE US DIFFICULTIES WITH THE CHINESE. WE AGREE, HOWEVER, THAT PARAGRAPH 3 OF THE DRAFT PAPER IN OUR TELNO 1173 COULD BE EXPANDED ON THE GENERAL LINES PROPOSED BY UKMIS GENEVA, SUBJECT TO SOME ALTERATIONS DESIGNED TO MEET THE POINT ASOVE.

!

1

1

4. IN ORDER TO MAINTAIN OUR POSITION THAT WE ARE NOT AT ANY STAGE PUTTING HONG KONG INTO THE STATUS OF ONLY A 'DE FACTO PARTY, AND THAT ON THE CONTRARY HONG KONG IS ENTITLED (NEXT TWO WORDS UNDERLINED) AB INITIO AND WITHOUT QUALIFICATION TO BE DEEMED TO BE A CONTRACTING PARTY', WE DO NOT WISH THERE TO BE ANY INTERVAL OF TIME BETWEEN THE DEPOSIT OF THE THREE DECLARATIONS. THIS IS EVEN MORE IMPORTANT NOW THAT WE HAVE (RELUCTANTLY) AGREED TO INTRODUCE CONDITIONAL PHRASEOLOGY INTO THE DRAFT UK DECLARATION

(SSIF IT SO WISHES**).

CONFIDENTIAL

15.

125