TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 110

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RECEIVED IN REGISTRY 10 JUN 1986

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REGISTRY Action Taken

TO IMMEDIATE LISBON

TELNO 87

OF 301630Z JUNE 86

FOLLOWING TELEGRAM NOW REPEATED TO YOU AT REQUEST OF HK DEPARTMENT WAS RECEIVED FROM HONG KONG TELNO 1662 OF 30.5.86.

INFO PRIORITY PEKING, UKMIS GENEVA

UKMIS GENEVA PLEASE PASS COPY TO CARTLAND.

JLO VI: HONG KONG AND THE GEATT

WE HAVE HEARD INDIRECTLY THAT THE MACAU ADMINSTRATION HAVE DRAWN THEIR OWN CONCLUSIONS FROM THE SUCCESSFUL HANDLING BY HMG

AND CHINA OF THE SEATING OF HONG KONG AS A CONTRACTING PARTY AND ARE PRESSURING PORTUGAL TO MAKE A GATT ARTICLE XXVI(5)(C) DECLARATION IN THEIR FAVOUR. SPEAKING TO DONALD TSANG EARLIER

THIS WEEK KAYSER SUNG OF THE MONTHLY JOURNAL TEXTILE ASIA SAID HE HAD LEARNT THIS ON GOOD AUTHORITY. SUNG THOUGHT THIS PROPOSAL WOULD BE PUT TO THE CHINESE DURING THE COURSE OF THE NEGOTIATIONS ON THE FUTURE OF MACAU.

2. THIS IDEA IS MOST UNWELCOME, AS WE OURSELVES ARE NOT HOME AND DRY (VIDE JAPANESE, INDIAN AND POSSIBLY CONTINUING U.S. REACTIONS).

>

A DISCUSSION IN THE GATT ABOUT MACAU MEMBERSHIP COULD RE-OPEN

PANDORA'S BOX, PARTICULARLY AS MACAU TAKES NO PART IN GATT AT PRESENT. WE CANNOT SUPPOSE THAT IN SUBSTANCE THE CHINESE WOULD

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