TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 104

GRS 225

CONFIDENTIAL

FM NEW DELHI

Confidential

НКК 12211

TO IMMEDIATE Foo

TELNO 820

OF 03081OZ JUNE 86

RECEIVED IN REGISTRY

NOCA

1 0 JUN 1986

EGISTRY

* Taken

AB 10

INFO PRIORITY HONG KONG, PEKING, TOKYO, JUKMIS GENEVA

(376 377

389

382

TOP COPY

YOUR TELNOS 601, 602 AND 609 : HONG KONG AND THE GATT

1. WE SHARE THE DOUBTS IN YOUR PARA 3 ABOUT THE USEFULNESS OF

A FURTHER APPROACH TO THE INDIANS. OUR CONCERN ABOUT THE EFFECTS

ON CONFIDENCE IN HONG KONG OF QUESTIONING ON THIS ISSUE WAS

FULLY DEVELOPED BY HEAD OF CHANCERY IN HIS CALL ON ABHYANKAR.

ASSURANCES ABOUT THE POSITION AFTER 1997 WERE SET OUT IN

DE FONBLANQUE'S LETTER OF 20 MAY. THERE ARE NO ADDITIONAL POINTS

OF SUBSTANCE, AS FAR AS WE CAN SEE, IN TUR'S WHICH WOULD BE LIKELY TO INFLUENCE THE INDIANS. A FURTHER APPROACH MAKING THE

SAME POINTS WOULD ONLY AROUSE THEIR INTEREST. NOR WOULD A

PARALLEL CHINESE APPROACH BE LIKELY TO HELP: IT IS PRECISELY

DEEP INDIAN SUSPICION OF CHINA THAT IS PROBABLY THE ROOT CAUSE

OF THEIR RESERVATIONS.

2. OUR RECOMMENDATION IS THAT WE SAY NOTHING FURTHER TO THE

INDIANS AT LEAST UNTIL THEIR INTENTIONS ARE CLEARER. IT IS

POSSIBLE THAT THE INDIANS WILL THINK BETTER OF TAKING THIS ANY FURTHER, GIVEN THE LACK OF ANY OPEN SUPPORT FOR THEM AT THE GATT COUNCIL. IF THE SUBJECT COMES UP, WE WILL OF COURSE DRAW ON TURS.

BROOMFIELD

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD HD/FED

RESEARCH D (FE)

DEP/HD PUSO SAD.

PS/MR RENTON MR WILSON

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

Confidential