TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 144

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GRS 320

CONFIDENTIAL

FM OSLO

TO PRIORITY FCO

TELNO 63

OF 161508Z APRIL 86

CONFIDENTIAL

INFO PRIORITY HONG KONG, PEKING

* YOUR TELNOS 169,170 AND 171 TO CANBERRA HONG KONG AND GATT :

BRIEFING OF CONTRACTING PARTIES

SUMMARY

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1. ACTION TAKEN ON 16 APRIL. THE NORWEGIANS FORESEE NO DIFFICULTIES. THE CHINESE EXPECT TO TAKE ACTION ON 18 APRIL.

DETAIL

2. AS NO APPROPRIATE MINISTERIAL INTERLOCUTOR WAS IMMEDIATELY AVAILABLE, AND IN ORDER NOT TO DELAY THE CHINESE DEMARCHE, ECONOMIC COUNSELLOR TOOK ACTION ON 16 APRIL WITH JOHANNESSEN, ECONOMIC COORDINATOR, MFA, AND SEPARATELY WITH STUGU, ACTING 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.

CONFIDENTIAL

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