TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 33

GRS 550

CONFIDENT:FAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 795

RECEIVED

OF 14105OZ MARCH 86

CONFIDENTIAL

нии ocor

REGISTRY

1 7 MAR 1986

14

*INFO HIMMEDIATE PEKING, UKMIS GENEVA

DESK OFFICER

INDEX

PA

REGISTRY Action Takan

74

4t

OUR TELNO 773: HONG KONG AND GATT: BRIEFING OF CONTRACTING PARTIES.

AS PROMISED IN PARA 3 OF TUR, WE HAVE CONSIDERED FURTHER POSSIBLE TARGETS FOR LOBBYING. A PRELIMINARY LIST WAS SUGGESTED IN OUR TELNO 257. OUR VIEWS ON THIS SHOULD BE ASSESSED AGAINST OUR LIMITED OFFICIAL EXPOSURE OVERSEAS OTHER THAN IN GENEVA, BRUSSELS AND WASHINGTON AND AGAINST OUR PRIMARY CONCERN WITH TRADE. OUR RECOMMENDATION IS AS FOLLOWS :-

(A) DEVELOPED COUNTRIES THAT COULD BE BROUGHT ON BOARD IF SUITABLY APPROACHED INCLUDE .E. U.S., EEC MEMBER STATES NORDICS, CANADA, AUSTRALIA, N.Z., AUSTRIA, SWITZERLAND AND JAPAN. WE SUGGEST THEY SHOULD BE LOBBIED BY UKMIS (GENEVA), HMA IN CAPITALS AND BY CPG.

(B) THOSE GENERALLY SUPPORTIVE OF HONG KONG WITH LITTLE PERSUADING INCLUDE COLOMBIA, URUGUAY, PAKISTAN, SRI LANKA AND BANGLADESH. THEY SHOULD BEST BE LOBBIED IN GENEVA BY BOTH UKMIS AND CPG MISSION IN GENEVA. OUR GENEVA OFFICE MIGHT ALSO HELP.

(C) SINGAPORE, MALAYSIA AND THAILAND SHOULD BE LOBBIED BY HMG BOTH IN CAPITALS AND GENEVA. THE CHINESE MAY WISH TO GIVE THEM A MISS EXCEPT IN THE CASE OF THAILAND.

(D) EAST EUROPEAN COUNTRIES MIGHT GENERALLY BE SUPPORTIVE OF CHINNA BUT POSSIBLY MORE SUBJECT TO RUSSIAN INFLUENCE ON A QUESTION LIKE THIS. HONG KONG GENERALLY RECEIVES SUPPORT IN GATT FROM HUNGARY, YUGOSLAVIA AND RUMANIA RELATIONS ARE CORDIAL BUT SLIGHTLY DISTANT, SUGGEST THEY BE LOBBIED BY THE CHINESE, IF THEY WISH.

(E) THE ''GANG OF FIVE'' LN GENEVA INDIA, BRAZIL, EGYPT, YUGOSLAVIA AND ARGENTIAN MIGHT SEE AN OPPORTUNITY TO PRESSURE US INTO THEIR FOLD ON THE NEW ROUND AND ARE THEREFORE LIKELY TO BE MORE DIFFICULT TARGETS. LIKE THE EAST EUROPEANS, INDIA MAY IN ANY CASE BE CONSCIOUS OF RUSSIAN WHEWS. HMG WILL PROBABLY NOT WISH TO COURT ARGENTINA DIRECTLY, BUT SHOULD LOBBY THE REST OF THE GROUP, IN PARALLEL WITH THE CHINESE IN CAPITALS AND GENEVA.

(F) SOUTH KOREA IS ANOTHER CASE WHERE THE OPPORTUNITY MIGHT BE TAKEN FOR BARGAINING LEVERAGE ON E.G. TEXTILES, BUT ON THE OTHER HAND THEY HAVE THEIR OWN STATUS PROBLEMS AND MIGHT BE LOOKING TO *NGRATIATE THEMSELVES WITH CHINA AND NOT TO UPSET THE NEUTRAL GROUND

OF HONG KONG THROUGH WHICH THEY DEAL WITH THE CHINESE. PROBABLY ALRIGHT, AND SHOULD BE LOBBIED BY HMG IN SEOUL AND GENEVA.

CONFIDENTIAL

G

84