TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 222

CONFIDENTIALOP COPY

7

GRS 320

CONFIDENTIAL

FM WASHINGTON

TO PRIORITY FCO

TELNO 16

OF 06150OZ JANUARY 36

INFO PRIORITY UKMIS GENEVA

AND TO ROUTINE PEKING, UKREP BRUSSELS, HONG KONG (FOR POLITICAL ADVISER TO GOVERNOR

༢

UKMIS GENEVA TELNO 01: HONG KONG AGREEMENT: GATT, CHINA AND

HONG KONG

1.

WE BRIEFED DEPUTY US TRADE REPRESENTATIVE SMITH IN GENERAL TERMS ON OUR THINKING ON HONG KONG AND GATT IN AUGUST (MY TELNO 2479). WE HAD HAD NO CONTACT WITH THE ADMINISTRATION SINCE THEN UNTIL LAST WEEK, WHEN THE DESK OFFICER IN USTR, MS KLEIN, ENQUIRED WHERE THINGS STOOD (PLUMBLY'S TELELETTER OF 3 JANUARY TO MADELIN, ITP, DTI, COPIED TO FED AND ECD(E)).

2.

ALTHOUGH SHE HAD AMPLE OPPORTUNITY TO DO SO, MS KLEIN DID NOT SUGGEST THAT THE AMERICANS WERE TAKING THE LINE THAT THE HONG KONG POSITION MUST BE CLARIFIED BEFORE THE ISSUE OF CHINA'S OWN ADHERENCE TO THE GATT COULD BE RESOLVED. ON THE OTHER HAND, SHE DID MAKE IT VERY CLEAR THAT THE AMERICANS. WERE UNHAPPY ABOUT THE CHINESE SIMPLY RESUMING THE VACANT REPUBLIC OF CHINA SEAT AND THAT THEY WERE LIKELY TO INSIST ON CHINESE ASSURANCES ON MARKET ACCESS AND IMPORT DISRUPTION BEFORE ACQUIESCING IN

CHINESE MEMBERSHIP.

3. WE WOULD BE HAPPY TO GO OVER THE ISSUE AGAIN WITH MIKE SMITH BUT WILL NEED GUIDANCE, AND BACKGROUND ON WHAT HAS PASSED SINCE OCTOBER (THE LAST PAPER WE HAVE ON THE HONG KONG/

GATT ISSUE IS PEKING TELNO 1429).

WRIGHT

нки осо

RECEIVED¦ &EGISTRY

- 8 JAN 1986

Vrte

toliten

DESY OFFICE

INDEX

REGISTRY

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D (FE)

D/HD PUSD - ECD (E)

MR WILSON

COPLES TO:

MR FIFOOT, LEGAL ADVISERS

MR WOOD LEGAL ADVISERS MR. JOHNSON

MR. MADELIN

CONFIDENTIAL

}DTI

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