GRS 250
CONFIDENT:PAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1086
OF 1204552 APRIL 86
INFO PRIORITY PEKING
CONFIDENTIAL
HONG KONG AGREEMENT : RESTRICTED
JLG • GATT
TOP COPK
TWO PRESS ARTICLES ON GATT #N THE TA KUNG PAO OF 9 APRIL
AND FRONT PAGE SCMP OF 11 APRIL ARE UNFORTUNATE, THE FORMER
QUOTES AN OFFICIAL OF THE DEPARTMENT OF TRADE AND 4NDUSTRY AS SAYING THAT THE BRITISH GOVERNMENT WOULD SUBMIT A PROPOSAL TO GATT WITHIN TWO WEEKS IN SUPPORT OF HONG KONG BECOMING AN INDEPENDENT MEMBER (SIC) AND THAT THE CHINESE GOVERNMENT WOULD DELIVER A SIMILAR
DOCUMENT SIMULTANEOUSLY. THIS IS TO OUR KNOWLEDGE THE FIRST TIME
THAT THE PROPOSED CHINESE DECLARATION HAS BEEN MADE PUBLIC.
THE OFFICIAL WAS QUOTED AS SAYING THAT UK HAD ALSO BEEN CONSULTING
WTS MAJOR TRADING PARTNERS ON THE SUBJECT.
2. CHUGANN, WITHOUT QUOTING SOURCES, FOLLOWED UP THESE TWO POINTS RATHER MORE SENSATIONALLY IN HIS LEADING FRONT PAGE SCMP ARTICLE
ON 11 APRIL. BRITISH EMBASSIES WERE TO ''SOFTEN UP FOREIGN
GOVERNMENTS TO FORESTALL ANY ADVERSE REACTION TO THE PROPOSAL.
BEIJING WAS SET TO REAP CREDIT FOR THE AGREEMENT BY PLAYING A
VISIBLE ROLE AND MAKING A PARALLEL STATEMENT IN SUPPORT. BEIJING
WOULD ANNOUNCE ITS INTENTION TO ALLOW HONG KONG'S BRITISH SPRONSORED
STATUS TO CONTINUE AFTER 1997.
3. THE CHINESE WOULD HAVE EVERY RIGHT TO BE DISPLEASED AT THESE
DISCLOSURES ESPECIALLY AT THIS DELICATE STAGE. IT MIGHT BE
USEFUL TO REMIND DT OF THE SENSITIVITY AND CONFIDENTIALITY
OF THE PROPOSED GATT ARRANGEMENTS.
YOUDE
HONG KONG AGREEMENT: RESTRICTED
LIMITED
HD/HKD
HD/FED
RESEARCH D (FE)
COPIES TO:
MR FIFOOT, LEGAL ADVISERS
MR WOOD LEGAL ADVISERS
DEP/HD PUSD
PS/MR RENTON MR WILSON
HRK 122/1
FACE
M
N
NTRY
1 4 APR 1986
TAB 14/4
CONFIDENTIAL
43
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