GRS 650
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 877
OF 211105Z MARCH 96
CONFIDENTIAL
114
TOP COPY
INFO IMMEDIATE UKDER TRUSSELS, UKMIS GENEVA, WASHINGTON
(109 F
WASHINGTON TELNO 687 : HONG KONG/GATT
WE ARE SOMEWHAT DISTURBED BY SMITH'S PEACTION. THE WHOLE OBJECT OF THE PRESENT EXERCISE IS TO SECUPE HONG KONG'S POSITION IN THE GATT (NEXT WORD UNDEPLINED) AFTER 1997. TO THIS END IT HAS PEEN NECESSARY TO FIND A MECHANISM TO ESTABLISH HONG KONG THERE NOW, THAT WOULD ENSURE CONTINUITY THROUGH 1997. THE SUCCESS OF OUR PLAN FOR THE POST 1997 PERIOD DEPENDS ON THE PRC DECLARATION. WE DO NOT (NOT) NEED CONTRACTING PARTIES (CP'S) TO EXPRESS THEIR SUPPORT FOR THE PRC DECLARATION SUT DO NEED THEIR ACQUIESCENCE OR SILENCE. THIS IS A WHOLE PACAKAGE WHICH IS SEPARATE FROM THE QUESTION OF CHINESE GATT MEMBERSHIP. IT WOULD BE DISASTROUS IF THE AMERICANS, DELIBERATELY OP BY OVERSIGHT, PEGAN TO UNPICK IT: OUP CASE BASED ON ESTOPPEL WOULD BE FRUSTRATED.
2. WE ARE ALSO CONCERNED ABOUT SMITH'S REFERENCE TO THE FEASIBILITY OF CHINA LAUNDERING RESTPICTED EXPORTS THROUGH THE SAR.
IF THE SAR SHOULD FAIL TO MAINTAIN THE INTEGPITY OF THE CERTIFICATION OF ORIGIN CURRENTLY IN FORCE IN HONG KONG, THAT COULD PE GPOUNDS FOR THE USA TO TAKE ACTION AT THAT STAGE.
3. WASHINGTON WILL MEANWHILE HAVE SEEN OUP FULL SPEAKING NOTE
102) (FCO TELNO 476). THEY WILL KNOW HOW TO MAKE FEST USE OF THIS
WITH THE USTR. BUT IT MIGHT BE USEFUL IF MINISTER (COMMERCIAL) PETURNED TO THE CHARGE SEEN WITH SMITH FAIRLY SOON TO ENSURE THAT OUR STRATEGY DOES NOT GO WRONG, AND TO MAKE CLEAP THE POLITICAL WEIGHT BEHIND THE GATT OPERATION. AN EAPLY APPROACH TO STATE DEPARTMENT MAY ALSO BE DESIRABLE.
4. IN PARTICULAR WE SHALL NEED TO PERSUADE THE ADMINISTRATION, WHATEVER THEIR HESITATIONS, TO KEEP THEIR OWN COUNSEL. IF THE U.S. FINDS IT NECESSARY TO KEEP SILENT IN THE GATT IN THE FACE OF THE UK DECLARATION WE SHALL UNDERSTAND WHY. THEIR SILENCE IS ALL THAT IS PEQUIRED. BUT AN EXPLICIT RESERVATION OF THEIR POSITION ON THE POST-1997 ARRANGEMENTS COULD EASILY SABOTAGE THE WHOLE EXERCISE. WE HOPE THAT THIS CAN BE BROUGHT HOME WITH SOME FORCE.
5. THIS INITIAL U.S. REACTION HAS ALSO BEEN POPNE IN MIND IN THE SECOND PHASE OF DIPLOMATIC ACTIVITY TO BE CO-OPDINATED WITH THE PRC. WE SHOULD MAKE CLEAR THAT WE ARE NOT (NOT) ASKING FOR ACTIVE SUPPORT TO DE EXPRESSED FOR THE CHINESE DECLARATION. ANY PEFEPENCE WHICH MIGHT BE INTEPPPETED TO MEAN THE CONTRARY SHOULD BE AVOIDED. IN THIS RESPECT WE SUGGEST THE WORDS ARE SUPPORT TE DELETED FROM THE FIRST SENTENCE OF PARA 11 OF THE DRAFT INSTRUCTIONS IN OUR TELNO
7740
CONFIDENTIAL
16.
2 4 MAR 1986
HICH 040/2
RECEIVED IN REGISTRY
DESK OFFICER
INDEX
PA
REGISTRY
Action Taken
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