TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 18

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2. WE SHALL NOT BE MAKING PUBLIC AT THIS STAGE THE EXACT PROCEDURE

THAT WE HAVE AGREED TO ADOPT. HOWEVER IT IS VERY LIKELY THAT THIS

WILL BECOME KNOWN, OR BE GUESSED AS SOON AS BASIC AGREEMENT ON THE

ISSUE BECOMES PUBLIC AT THE CLOSE OF THE JLG MEETINGS ON 14 MARCH.

WE SUGGEST THEREFORE THAT IT WOULD BE WISE FOR EMBASSIES IN A NUMBER

OF KEY CAPITALS TO SPEAK AT ONCE, INFORMALLY, TO HOST GOVERNMENTS.

THE OBJECTIVE WOULD BE TO GIVE AN ADVANCE INDICATION OF WHAT HAS

BEEN AGREED: TO FORESTALL ANY IMMEDIATE COMMENT OR REACTION WHICH

WOULD BE UNHELPFUL: AND TO LET THEM KNOW THAT THEY WILL RECEIVE A

FORMAL, CO-ORDINATED EXPLANATION FROM THE BRITISH AND CHINESE

GOVERNMENTS IN THE NEAR FUTURE.

3. IF YOU AGREE, PLEASE INSTRUCT COPY ADDRESSEES OF THIS TELEGRAM

TO SPEAK INFORMALLY AT A WORKING LEVEL TO HOST GOVERNMENTS (AND

UKREP TO THE COMMISSION) ON THE FOLLOWING LINES (UKMIS GENEVA

WOULD TAKE PARALLEL ACTION WITH GATT DELEGATIONS):

(A) AS THEY WILL KNOW, THE SINO-BRITISH JOINT DECLARATION ON

THE FUTURE OF HONG KONG INCLUDED PROVISIONS WHEREBY HONG KONG COULD

MAINTAIN ITS PRESENT PARTICIPATION AND AUTONOMY IN THE GATT AND

OTHER SIMILAR TRADING ARRANGEMENTS:

(B) THE BRITISH AND CHINESE GOVERNMENTS HAVE NOW REACHED

AGREEMENT ON THE PROCEDURE TO BE ADOPTED TO BRING THIS ABOUT.

FORMAL APPROACHES WILL SHORTLY BE MADE BY THE TWO GOVERNMENTS

EXPLAINING FULLY WHAT IS INTENDED:

(C) IN THE MEANTIME IT IS NOT (NOT) OUR INTENTION TO EXPLAIN IN

PUBLIC THE EXACT PROCEDURE THAT WE HAVE IN MIND. IT IS HOWEVER

ALWAYS POSSIBLE THAT THIS MIGHT BECOME KNOWN. IN ANY EVENT WE

VERY MUCH HOPE THAT GOVERNMENTS WILL REFRAIN FROM ANY PUBLIC

COMMENT, ESPECIALLY IF IT COULD HAVE THE EFFECT OF CASTING DOUBT

ON THE INTENDED PROCEDURE, UNTIL WE HAVE BEEN GIVEN AN OPPORTUNITY

FULLY TO EXPLAIN OURSELVES. WE SHALL THEN BE ASKING FOR

UNDERSTANDING AND SUPPORT FOR WHAT WE INTEND, IN THE SPIRIT OF THE

SUPPORT EXPRESSED BY GOVERNMENTS FOR THE JOINT DECLARATION ITSELF.

(D) (NEXT TWO WORDS IN SQUARE BRACKETS) IF PRESSED BRIEFLY, THE

PROCEDURE ENVISAGED IS TO USE GATT ARTICLE XXVI (5) (C). THE U.K.

GOVERNMENT WILL MAKE A DECLARATION UNDER THE ARTICLE THAT HONG KONG

IS DEEMED TO BE A CONTRACTING PARTY. THE P.R.C. GOVERNMENT WILL MAKE

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CONFIDENTIAL