TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 55

KW

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CHINA : COMMENTS ON PARAS 1-10

Para 1: Add new first sentences :

"China has recently acquired the status of observer in the GATT

and has announced her intention of applying eventually for

full GATT membership.

to this should be."

This paper considers what the UK reaction

Drathy)

7

Para 4: The EC is not devoid of weapons against "rogue elephants".

China has some obligations under the current EC/China Trade Agreement,

and her non-membership of GATT allows us some measure of autonomy

to curb disruptive Chinese behaviour. The paragraph should conclude:

"... outside the GATT. In such circumstances, the EC would have

recourse to the sanctions and defences allowed under its present

trading arrangements with China."

Para 6:

This is in part an economic analysis, and should therefore

The first two sentences could be deleted and the remainder

come later.

added to the end of para 5. The heading "British Interests and

Hong Kong" should come before the present para 7.

Para 8: The first sentence should begin: "We believe that it is

legally possible for Hong Kong to continue participating in the GATT

after 1997 (as a contracting Party ...".

This

Para 9 bis: The question of the "Soviet precedent" is better dealt

with in this, general section than under "trade policy aspects".

could be done by adding after para 9 a heading "Chinese membership

and a possible Soviet application", and then by bringing up para 12,

which should finish in a less sanguine manner; thus