TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 204

GRS 280

CONFIDENTIAL

CONFIDENTO AL

FM UKMIS GENEVA

TO DESKBY 18163OZ FCO

TELNO 189

OF 181505Z APRIL 1986

INFO IMMEDIATE HONG KONG, PEKING, BRASILIA

198

78

OUR TELNO 186: HONG KONG AND GATT

O O PY

HKK 12211

RECEIVED IN REGISTK'i

2 1 APR 1986

(203

DESK OFFICEL INDEA

G-STRY

PA

Action Taken

35 24/4.

1. BOTH WE AND THE CHINESE HAVE NOW COMPLETED THE BRIEFING EXERCISE, APART FROM THE CHINESE APPROACH TO THE ARGENTINIANS TO BE MADE LATER THIS AFTERNOON.

2. THE GENERAL RESPONSE HAS BEEN SYMPATHETIC. SOME DELEGATIONS RAISED QUESTIONS ON THE LINES OF THOSE IN MY TELNO 172, PARA 2, BUT APPEARED TO BE SEEKING INFORMATION RATHER THAN CAUSING DIFFICULTIES.

ALL INDICATED THAT THEY WOULD REFER OUR APPROACHES TO CAPITALS.

3.

HOWEVER, BRAZIL MIGHT POSE A PROBLEM. ALTHOUGH THE MINISTER (MARTINS) APPEARED SYMPATHETIC WHEN WE APPROACHED HIM EARLIER THIS WEEK, AMBASSADOR BATISTA TOLD THE CHINESE AMBASSADOR AT NOON TODAY THAT HE NEEDED THME, POSSIBLY SEVERAL WEEKS, TO REFLECT UPON THE IMPLICATIONS, INCLUDING THE POSSIBLE NEED FOR A WORKING PARTY, TRAN

(COMMISSION) TOLD US SUBSEQUENTLY THAT BATHSTA IS CONCERNED LEST HONG KONG BECAME A STATE-TRADER, BUT TRAN WAS NOT INCLINED TO TAKE BATISTA'S INTELLECTUAL GAME' TOO SERIOUSLY.

4. WE TOLD THE CHINESE, WHO WERE PERTURBED AT BATISTA'S NEGATIVE ATTITUDE, THAT THIS WAS NOT UNTYPICAL OF HIS CURRENT OBSTRUCTIVE APPROACH TO GATT MATTERS. WE SUGGESTED IT WOULD MAKE SENSE OF BOTH THE UK AND CHINESE AMBASSADORS IN BRASILIA MADE FURTHER STRONG REPRESENTATIONS THERE WITH A VIEW TO OVERRULING AMBASSADOR BATISTA'S

DOUBTS. #SHALL ALSO CALL ON BATISTA MYSELF TO TRY TO REMOVE HIS

DOUBTS.

BTWERIQQD

MF TO THE CHINESE THAT EVEN IF THE BRAZILIANS

REMANNED DIFFICULT, WE MUST PROCEED WITH THE PLAN AS AGREEED AND RALLY SUPPORT AMONG OUR FRIENDS TO RESIST ANY SUGGESTION AT THE MAY COUNCIL THAT A WORKING PARTY SHOULD BE ESTABLISHED.

CONFIDENTIAL

}