TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 183

CONFIDENTIAL

9971

OCMIAN 9971

CONFIDENTIAL

PP BREEC

FM FCOLN TO BREEC

231215Z JAN

GRS 330

CONFIDENTIAL

FM FCO

TO PRIORITY UKREP BRUSSELS

TELNO 32

OF 231215Z JANUARY 86

нии

04012

RECEIVED IN REGISTRY

· 3 FEB 1986

DESK OFFICER

INDEX

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PA

Ai

INFO PRIORITY HONG KONG, PEKING, UKMIS GENEVA

26

YOUR TELNO 117: HONG KONG AND THE GATT

1.

WE AGREE THAT THE TIME HAS COME TO BRIEF THE COMMISSION SPECIALISTS ON OUR NEGOTIATIONS WITH THE CHINESE ON HONG KONG AND THE GATT, PARTICULARLY IN VIEW OF TRAN'S COMMENTS AND LUTYEN'S LATEST UNSIGHTED COMMENTS REORTED IN STOW'S LETTER TO SHEPHERD

OF 16 JANUARY.

2.

NEGOTIATIONS WITH THE CHINESE ARE AT A PARTICULARLY DELICATE STAGE. WE HAVE MADE SOME PROGRESS IN THE EXPERT DISCUSSIONS AND ENGAGED THE CHINESE IN DISCUSSION OF THE PROPOSED DECLARATIONS ENABLING HONG KONG TO BE DEEMED TO BE A CONTRACTING PARTY UNDER ARTICLE XXVI 5(C). A POLITICAL DECISION IS STILL REQUIRED BY CHINESE LEADERS, AND WE HOPE THAT THEY WILL TAKE IT BEFORE THE NEXT MEETING OF THE JOINT LIAISON GROUP IN MARCH. WE SHOULD NOT WANT TO UPSET THIS BY WORD REACHING THE CHINESE THAT WE WERE LOBBYING INTERNATIONALLY AGAINST THEIR PROPOSED SOLUTION TO THE HONG KONG/GATT QUESTION AND IN FAVOUR OF OURS. WE WOULD THEREFORE BE GRATEFUL IF YOU WOULD EMPHASISE THE IMPORTANCE OF

CONFIDENTIALITY TO THOSE YOU BRIEF.

3.

WE HAVE SENT YOU BY BAG A COLLECTION OF THE LATEST TELEGRAMS. THE ESSENTIAL POINT TO GET ACROSS TO THE COMMISSION EXPERTS IS THAT OUR PROPOSALS ON HONG KONG ARE DESIGNED TO ENABLE HONG KONG TO PRESERVE ITS POSITION IN GATT AFTER THE TRANSFER OF

1

CONFIDENTIAL

G

1

G

41