TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 277

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Calamos dimajati Pati mai statomakkeita's is a 'reva tim

GRS 300.

CONFIDENTIAL

FM BERNE

TU PRIORITY FCO

TELNO 60

UF 1510152 APRIL 86

CONFIDENTIAL

INFO PRIORITY HONG KONG, WASHINGTON, UKMIS GENEVA, PEKING.

133

-YOUR TELNO 169 TO CANBERRA OF 8 APRIL: HONG KONG AND GATT

1.

ACTION TAKEN THIS MORNING WITH SOMMARUGA, STATE SECRETARY

IN THE FEDERAL DEPARTMENT OF THE ECONOMY, WHO IS HIMSELF A

GATT EXPERT, MY CHINESE COLLEAGUE HAS PARALLEL INSTRUCTIONS

AND WILL ALSO NOW ACT ON THEM.

2. I HANDED OVER A PIECE OF PAPER BASED ON PARAS 1-7 OF YOUR TELNO

170 TO CANBERRA, SOMMARUGA IMMEDIATELY COMPREHENDED THE OBJECTIVES

OF ASSURING CONTINUITY AND MAINTAINING CONFIDENCE, AND DESCRIBED

THE EXERCISE AS MAKING DE JURE WHAT IS ALREADY DE FACTO'. BUT

THIS HE SAID WAS A PERSONAL REACTION. OFFICIALLY HE COULD AT THIS

STAGE ONLY **TAKE NOTE",

3. IN RELATED · CONVERSATION SOMMARUGA MENTIONED THE QUESTION OF

PRECEDENT AND THE IMPLICATONS, PARTICULARLY FOR ANY POSSIBLE SPECIAL REGIME FOR CHINA-SAR HONG KONG TRADE AFTER 1997 ( BY

ANALOGY FOR EXAMPLE WITH THE REGIME. FOR INNER-GERMAN'' TRADE

BETWEEN GDR AND FRG). DRAWING ON THE BRIEFING MATERIAL AND

QUUTING THE TEXT OF GATT ARTICLE XXVI (5) (C) I SAID THAT WHAT WAS ENVISAGED WOULD IN FACT BE A NOTIFICATION AND NOT A REQUEST

AND MENTIONED THE MUCH EARLIER SOUTHERN RHODESIA ETC PRECEDENT,

WHICH THE ARTICLE IN QUESTION WAS WRITTEN TO COVER. OUR DEMARCHE

NOW SHOULD BE SEEN AS A COURTESY TOWARDS THE SWISS AND OTHER

IMPURIANT GATT GOVERNMENTS, BECAUSE WE WANTED OUR NOTIFICATION

TO BE UNDERSTOOD AND WELCOMED IN THE GENERAL INTEREST.

SOMMARUGA SAID THAT HIS GOVERNMENT WERE GRATEFUL FOR THIS

CONSIDERATION. HONG KONG WAS A MAJOR TRADING PARTNER FOR

SWITZERLAND AND ALTHOUGH ITS EXPORTS HAD GIVEN RISE TO **SOME

PROBLEMS'' THE SWISS ADMIRED THE CONSISTENT WAY IN WHICH THE

HONG KONG AUTHORITIES HAD STUCK TO LIBERAL IMPORT POLICIES,

WHICH HAD MUCH TO DO WITH THE COLONY'S GREAT ECONOMIC SUCCESS.

RICH

HONG KONG AGREEMENT

LIMITED

HD/HKD

HD/FED

HD/PLANNING STAFF

DEP HD/PUSD

HD/PUSD

RD (MR WALKER)

PS

PS/LADY YOUNG

PS/MR RENTON

PS/PUS

COPIES TO:- MR ROBERTS

MR FIFOOT

MR WOOD

MR PEIRCE

NEWS DEPT

LEGAL ADVISERS

LEGAL ADVISERS

ASSESSMENTS STAFF CABINET OFFIC

CABINET OFFICE

MR MALLABY

MR DRC CHRISTOPHER

CABINET OFFICE

SIR P CRADOCK NO 10 DOWNING STREET

SIR W HARDING

SIR J FREELAND

MR WILSON MR CROWLEY

PUSD

CONFIDENTIAL

HRK 122/1

.i

1 6 APR 1986

Taken

ABB G