TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 67

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the Branch dealing with services trade. He is however a trained barrister specialising in international trade law and made his mark in the Department as head of the Trade Policy Branch, and before that an Adviser to former Prime Minister, Malcolm Fraser, on trade policy. For several years therefore he was closely involved in the formation of Australian trade policy, and, under the present Government, was involved with Dr Ross Garraut (then Mr Hawke's principal Economic Adviser, and now Australian Ambassador in Peking) in establishing the Regional Trade Initiative, following Mr Hawke's launching of the idea in Bangkok in November 1983 (my letter of 14 March to Medway, ITP, DTI, copied to ECD (E) and others refers). McDonnell is therefore very well versed in the theory and practice of international trade, the negotiation of multilateral understandings, and in the trade concerns of Australia's regional neighbours. (You should certainly not be put off by McDonnell's appearance and demeanour which makes it quite clear that he enjoys spending substantial portions of his time in restaurants: he is both sharp and hard working.)

3. McDonnell seems to have negotiated for himself a deal with ADAB (the Australian Development Assistance Bureau) under which they will provide A$400,000 from their funds and World Bank funds to finance McDonnell for the first 12 months starting at the end of March 1986. There is an option for the project to be extended for a second year, in which case finance of A$750,000 would be provided since, by then, it is anticipated that serious bilateral negotiations with major contracting parties would have begun, and necessitate extra resources and travelling. McDonnell is going to operate from an office in Canberra, with frequent trips to Peking as well as to Washington, Brussels and Tokyo. He is retaining, initially, legal firms in Washington and Tokyo to work for him in those capitals. His brief is fourfold:

to advise China on the modalities and substance of an application to GATT;

a.

b. assuming the application proceeds, to conduct negotiations on the Chinese' behalf with the GATT Secretariat and major bilateral contracting parties;

C. to advise the Chinese on their system of import regulation, and the changes needed to make it compatible with GATT;

a. to train Chinese negotiators and officials in GATT matters.

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