TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 42

GRS 195

CONFIDENTIAL

CONFIDENTIAL

FM NEW DELHI

TO PRIORITY FCO

TELNO 591

OF 2510ACZ APRIL 85

INFO PRIORITY PEKING, HONG KONG

Be copy to Victis Geneva

OUR TELNO 567: HONG KONG AND GATT

1.

WE HAVE SPOKEN TO ABHYANKAR (DIRECTOR IN THE MEA'S ECONOMIC DIVISION) BOTH TO FOLLOW UP THE LETTER SENT TO HIM ON 17 APRIL, AND TO TELL HIM ABOUT THE TIMING OF THE DECLARATIONS (YOUR TEL NO

227 TO CANBERRA).

2. HE HAD NO SPECIFIC POINTS TO RAISE, BUT COMMENTED THAT CHINA MIGHT HAVE TO MAKE SOME CONCESSIONS TO SECURE SPECIAL TREATMENT FOR HONG KONG AFTER 1 JULY 1997. AT THE LEAST, HE SAID THERE WOULD HAVE TO BE SAFEGUARDS TO ENSURE CHINA DID NOT TAKE ADVANTAGE OF ADDITIONAL QUOTAS SET FOR HONG KONG IN ORDER TO EXPORT GOODS PRODUCED ON THE MAINLAND. EXPERTS WOULD HAVE TO WORK OUT A WATERTIGHT SYSTEM, INVOLVING CERTIFICATES OF ORIGIN AND SO ON. ABHYANKAR GAVE THE IMPRESSION THAT THE MEA WAS RELAXED ABOUT THE DECLARATION, BUT THAT THEY WOULD BE LOOKING AT THE SMALL PRINT VERY CLOSELY. HE COMMENTED THAT THERE WAS PLENTY OF TIME FOR EXPERTS TO LOOK CLOSELY AT WHAT EXACTLY WOULD BE INVOLVED.

3. WE MADE THE POINTS IN PARAGRAPHS 10 AND 12 OF YOUR TELNO 170 TO CANBERRA,

WADE-GERY

HONG KONG AGREEMENT

LIMITED

HD/HKD

HD/FED

HD/PLANNING STAFF

DEP HD/PUSD

HD/PUSD

RD (MR WALKER)

COPIES TO:- MR ROBERTS

MR FIFOOT

MR WOOD

MR PEIRCE

MR MALLABY

NEWS DEPT

LEGAL ADVISERS

LEGAL ADVISERS

ASSESSMENTS STAFF CABINET OFFICE

CABINET OFFICE

MR DRC CHRISTOPHER CABINET OFFICE SIR P CRADOCK NO 10 DOWNING STREET

PS

PS/LADY YOUNG

PS/MR RENTON

PS/PUS

SIR W HARDING

SIR J FREELAND

MR WILSON MR CROWLEY

PUSD

CONFIDENTIAL

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