TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 95

(B)

(C)

(D)

(E)

HOWE

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OVER IN GOOD ORDER. WE LOOK TO OUR FRIENDS, WHO WELCOMED

THE AGREEMENT, FOR SUPPORT IN THIS.

THE SINGLE MOST IMPORTANT FACTOR AFFECTING CONFIDENCE IN

HONG KONG'S FUTURE IS THAT EFFECTIVE ARRANGEMENTS SHOULD

BE MADE FOR THE TERRITORY TO CONTINUE TO PARTICIPATE

FULLY AND FREELY IN THE COMMERCE OF THE FREE WORLD, AND

IN ITS TRADING INSTITUTIONS, OF WHICH THE MOST IMPORTANT

IS THE GATT. THIS PRINCIPLE WAS ENSHRINED IN THE

JOINT DECLARATION.

BEFORE MAKING THE DECLARATIONS, WE AND THE CHINESE SPOKE

IN ALL TO 36 CONTRACTING PARTIES TO THE GATT. THE

OVERWHELMING MAJORITY HAVE WELCOMED THE ARRANGEMENTS AS

BEING GOOD FOR HONG KONG AND GOOD FOR INTERNATIONAL

TRADE. NONE, EXCEPT BRAZIL, HAS EXPRESSED ANY HINT OF

OPPOSITION TO THE ARRANGEMENTS, OR SPOKEN OF RAISING

QUESTIONS OR OBJECTIONS AT THE GATT COUNCIL.

IF THE BRAZILIANS WERE TO SPEAK AGAINST THE ARRANGEMENTS

FOR HONG KONG IN THE GATT COUNCIL IT WOULD HAVE A SERIOUS

EFFECT ON HONG KONG CONFIDENCE, PARTICULARLY IF OTHER CONTRACTING PARTIES WERE THEREBY PROMPTED TO RESERVE

THEIR OWN POSITIONS ALSO, AS COULD WELL HAPPEN. THIS WOULD SERIOUSLY UNDERMINE THE WHOLE CAREFULLY CONSTRUCTED

EDIFICE OF INTERNATIONAL SUPPORT FOR HONG KONG CONTINUING

IN ITS PRESENT TRADING STATUS. WE WOULD TAKE THIS VERY

MUCH AMISS.

WE VERY MUCH HOPE THAT THE BRAZILIANS WILL, ON

REFLECTION, AGREE AT LEAST TO ACQUIESCE SILENTLY IN THE

BRITISH AND CHINESE DECLARATIONS ON HONG KONG AT THE GATT

COUNCIL.

HONG KONG AGREEMENT : RESTRICTED

LIMITED

HD/HKD

HD/FED HOSAMD

RESEARCH D (FE)

DEP/HD PUSD

PS/MR RENTON MR WILSON

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

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