TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 6

Confidential

GOOD WARNING. IF I DID NOT HEAR FROM HIM FURTHER I COULD BE SURE THAT THE BRAZILIANS WOULD NOT RAISE DIFFICULTIES. HE ADDED FOR GOOD MEASURE THAT BATISTA, WHOM HE DESCRIBED AS SOMEBODY WHO COULD NOT LET ANYTHING PASS WITHOUT MAKING AN ISSUE OF IT, WOULD NOT BE IN GENEVA ON 22 MAY: HE WOULD BE

IN BRASILIA FOR AN INTERNAL MEETING. IF BATISTA ARGUED IN BRASILIA FOR RAISING DIFFICULTIES AT THE GATT COUNCIL MEETING, BARROS FIRSTLY SAID HE DID NOT THINK HE WOULD SUCEED AND SECONDLY REITERATED HIS UNDERTAKING TO INFORM ME PROMPTLY. OUR POLITICAL POINT WAS WELL TAKEN.

CCN:

APOLOGIES.

PLEASE ALTER PARA 3, LINE 13 TO READ 'RESULT IN

THANK YOU.

VERY SERIOUS DAMAGE’.

URE

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D (FE)

DEP/HD PUSD PS/MR RENTON MR WILSON

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

Confidential