328
GRS 650
CONFIDENTIAL
FM NEW DELHI.
TO PRIORITY FCO
TELNO 690
OF 1204OOZ MAY 86
Confidential
INFO PRIORITY UKMIS GENEVA, HONG KONG, PEKING
TOP COPY
YOUR TELNO 518
HEREWITH REPEAT OF OUR TELNO 673:
CONFIDENTIAL
FM NEW DELHI
TO PRIORITY FCO
TELNO 673
OF 0813OOZ MAY 86
INFO PRIORITY UKMIS GENEVA, HONG KONG, PEKING
HKR $12211
15 MAY 1986
AB Ms
3/4 YOUR TELNO 494: HONG KONG AND THE GATT
1. HEAD OF CHANCERY TOOK ACTION ON 7 MAY WITH ABHYANKAR, HEAD
OF ECONOMIC DIVISION IN THE MINISTRY OF EXTERNAL AFFAIRS.
ABHYANKAR SAND THE MATTER WAS UNDER CONSIDERATION AND NO DECISION
HAD YET BEEN TAKEN ABOUT THE INDIAN POSITION. HE WAS AWAITING A
REPORT FROM SHUKLA, IN PARTICULAR ABOUT A STATEMENT WHICH HE
UNDERSTOOD THE DIRECTOR GENERAL HAD RECENTLY MADE ON THE SUBJECT.
HE DID NOT KNOW THE EXACT CONTENT OF THE STATEMENT BUT WAS
DOUBTFUL ABOUT ITS PROPRIETY AND THOUGHT THAT THE AGREEMENT OF
CONTRACTING PARTIES WOULD BE NECESSARY BEFORE ANY DECISION WAS
TAKEN OVER HONG KONG'S STATUS. NOR WAS HE CLEAR IN WHAT TERMS
THE ISSUE WOULD COME BEFORE THE 22 MAY COUNCIL UNTIL HE HAD
REPORTS FROM GENEVA ON THESE POINTS HE WAS UNABLE TO TAKE UP A
POSITION. IN ANY CASE INDIA HAD ONLY RECENTLY STARTED TO
CONSIDER THE IMPLICATIONS OF THIS PROBLEM. THEY HAD NOT REALISED THAT OUR PREVIOUS DEMARCHE (BROOMFIELD'S LETTER OF 17 APRIL)
WOULD BE FOLLOWED SO RAPIDLY BY THE DECLARATIONS. HE WAS NOT
GREATLY CONCERNED ABOUT THE CHANGE IN HONG KONG'S CURRENT STATUS
AND ACCEPTED THAT HONG KONG ALREADY ACTED INDEPENDENTLY IN
PRACTICE (INDEED HE APPEARED AT ONE STAGE TO THINK THAT HONG
KONG HAD BEEN A CONTRACTING PARTY IN ITS OWN RIGHT FOR SOME TIME.)
HE WAS HOWEVER CONCERNED ABOUT THE IMPLICATIONS FOR THE PERIOD
AFTER 1997. HE DID NOT THINK THAT THE CONTRACTING PARTIES COULD
BE EXPECTED TO ANTICIPATE THE DECISIONS WHICH WOULD BE NEEDED IN
1997 AS A RESULT OF THE CHANGE IN STATUS OF HONG KONG. THE
IMPLICATIONS OF THE SAR'S MEMBERSHIP, WHILE CHINA MIGHT OR MIGHT
NOT BE A MEMBER AT THAT STAGE, WOULD NEED CAREFUL THOUGHT.
HOW WOULD IT BE ABLE TO FULFILL ITS OBLIGATIONS? WHAT WAS TO
PREVENT CHINA FROM GRABBING ITS, QUOTAS?
ITS, CONFIDENTIAL -
12
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