TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 142

CONFIDENTIAL

31750

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DEPUTY SECRETARY WITH RESPONSIBILITY FOR GATT IN THE MINISTRY

OF COMMERCE AND SHIPPING.

3. JOHANNESSEN SAID THAT THE NORWEGIANS COULD BE EXPECTED TO

WELCOME THE PROPOSED ACTION ON HONG KONG'S MEMBERSHIP OF THE

GATT AS AN IMPORTANT STEP TOWARDS PRACTICAL IMPLEMENTATION OF

THE DECEMBER 1984 JOINT DECLARATION. THEY WOULD STUDY THE LEGAL

POSITION CAREFULLY AND REVERT IF THERE WERE ANY FURTHER QUESTIONS,

ALTHOUGH THIS WAS MOST UNLIKELY GIVEN THE INFORMAL ADVICE

GIVEN BY THE GATT SECRETARIAT. STUGU ALSO FORESAW NO DIFFICULTIES

PROVIDED THE PROCEDURE ENVISAGED WAS, AS WE SEEMED CONFIDENT,

IN ACCORDANCE WITH GATT PROVISIONS.

4. ON A PERSONAL BASIS JOHANNESSEN WONDERED WHETHER IT WAS

APPROPRIATE FOR THE CHINESE, THEMSELVES NOT FULL CONTRACTING

PARTIES, TO MAKE THE DECLARATION ENVISAGED. STUGU ALSO ASKED

A NUMBER OF QUESTIONS, IN PARTICULAR WHETHER THE CHINESE MIGHT

REGARD THE PROPOSED STEP AS EASING THEIR PATH TOWARDS RESUMPTION

OF GATT MEMBERSHIP. HUNT RESPONDED BY DRAWING ON THE DEFENSIVE

MATERIAL IN YOUR TELNO 170. HE STRESSED THAT THE MOTIVE OF BOTH

THE BRITISH AND CHINESE GOVERNMENTS WAS ESSENTIALLY TO ENSURE

HONG KONG'S POSITION WITHIN THE GATT IRRESPECTIVE OF THE FATE

OF CHINA'S OWN EVENTUAL APPLICATION SEMI COLON AND THAT THE GATT

SECRETARIAT WERE CONTENT WITH THE PROPOSED PROCEDURE.

5. WE HAVE INFORMED THE CHINESE EMBASSY OF THE ACTION TAKEN.

THEY PLAN TO MAKE THEIR DEMARCHE ON 18 APRIL.

BENTLEY

ENDS

HOWE

OCMIAN 1750

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CONFIDENTIAL