TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 26

Reference.......

CONFIDENTIAL

HKK040/24

Mr Warren ECD (E)

RECEI

12 JUL 1985

IND..

.!Y

Laken

on

cc: Mrs Priest, HKD

Mr Woolley, Planning

Staff

Mr Hallett,

Advisers

Economic

053

меу

/allies

CHINA GATT

145)

1. We spoke about Tony Lane's letter of 17 June to John Shepherd.

2. The DTI comments on your paper are largely satisfactory from FED's point of view. We do however find somewhat alarming the thought (in DTI's revised paragraph 23 (viii)-(ix)) that we should actively sound out other governments on their likely response to a Chinese application and particularly that we should canvas the view that it will be necessary to insist on discretionary provisions It would be difficult to avoid such activity coming to the attention of the Chinese. This would be unhelpful: as will be clear from earlier minuting, we have strong reasons for wishing not to give the Chinese any cause to suspect that our position is less forth- coming that those of our partners.

3. I hope instead that it will be possible to adopt a lower profile. This should be possible without undue damage to our trading interests. Our trade policy concerns about Chinese membership of the GATT will presumably be common to those of some EC partners and other/ They would probably understand our wish not to expose ourselves, given the Hong Kong dimension; they will presumably also want to protect their own trade policy interests. Perhaps we can therefore leave it to others to take the lead.

4. I also have one minor quibble, on DTI's paragraph 23 (vi). Even without Hong Kong, I would hope that other bilateral factors would make it impossible for Britain to approve Chinese accession as a matter of principle.

CODE 18-77

AWO Ltd.

7/84

4 July 1985

Joh aut

J Ashton

Far Eastern Department W 83

233 8192

CONFIDENTIAL