3.
CONFIDENTIAL
19067 - 1
WE THEREFORE THINK THAT IF THE CHINESE DO AGREE AT JLG III WE SHOULD AIM AT A GUARDED REFERENCE IN THE COMMUNIQUE ALONG THE FOLLOWING LINES: 'THE BRITISH AND CHINESE SIDES CONTINUED THEIR DISCUSSION OF HONG KONG'S CONTINUED PARTICIPATION IN THE GATT AND REACHED A LARGE MEASURE OF AGREEMENT ON HOW THIS SHOULD BE SECURED. THE TWO SIDES WILL NOW BE CONSULTING THE GATT
IN RESPONSE TO ANY SECRETARIAT AND TALKING TO TRADING PARTNERS'. QUESTIONS WE WOULD DECLINE TO REVEAL THE PRECISE MECHANISM PROPOSED, AND SAY THAT THIS NEEDS TO BE DISCUSSED WITH THE GATT SECRETARIAT AND TRADING PARTNERS FIRST. THIS WILL NOT PREVENT SOME FAIRLY ACCURATE SPECULATION, BUT IT SHOULD AVOID THE WORST DANGERS OF UNSIGHTED RESPONSES FROM OTHER COUNTRIES.
4.
WE THINK THAT WE SHOULD THEN MOVE TO BRIEF THE GATT
AT THE SAME TIME SECRETARIAT AND THE EC COMMISSION IMMEDIATELY.
IT WE SHOULD INSTRUCT EMBASSIES TO BRIEF HOST GOVERNMENTS. MIGHT BE HELPFUL IF UKMIS GENEVA WERE TO DO THE SAME WITH DELEGATIONS IN GENEVA. OUR INITIAL FEELING IS THAT WE SHOULD APPROACH ALL OECD COUNTRIES AND PERHAPS ALSO SOME SOUTH EAST ASIAN GOVERNMENTS AND THIRD WORLD COUNTRIES SUCH AS BRAZIL. SOME OF THESE CASES A COORDINATED APPROACH WITH THE CHINESE MIGHT BE USEFUL. WE SHOULD BE GRATEFUL FOR COMMENTS ON WHICH COUNTRIES SHOULD BE APPROACHED, PARTICULARLY FROM UKMIS.
5.
IN
IF THIS PROCEDURE WAS SUCCESSFUL WE COULD THEN FORMALLY
ANNOUNCE THE XXVI(5)(C) ROUTE AT JLG IV.
6.
GRATEFUL FOR COMMENTS AS SOON AS POSSIBLE.
HOWE
OCMIAN 9067
HONG KONG AGREEMENT : RESTRICTED
LIMITED
HD/HKD
HD/FED И
ECO CG)
RESEARCH D (FE)
DEP/HD PUSD
PS/MR RENTCN MR WILSON
COPIES TO:
MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS,
MR HUM FID
MR MADELIN
DTI VIC ST
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