TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 155

GRS 190

CONF IDENT KAL

FM PEKING

TO KMMED NATE FCO

TELNO 892

OF 260759Z MAY 86

HICK 122/1

RECENTO INI

28 MAY 1986

CONFIDENTIAL

10

INFO IMMEDIATE HONG KONG

NIR

350

f

HONG KONG TELNOS /1570-1:

HONG KONG AND GATT.

1. THE FIRST SENTENCE OF PARAGRAPH 5 OF THE PROPOSED REPLY 1N

SECOND TUR STRIKES US AS A LITTLE DISINGENUOUS. WE HAVE ARGUED

WITH THE CHINESE THAT INTER ALIA SEPARATE CP STATUS FOR HONG

KONG WOULD REFLECT DEFACTO ARRANGEMENTS (PRIOR TO HONG KONG BEING

DEEMED TO BE A GATT CP): THE CHANGE IN HONG KONG'S FORMAL GATT

STATUS SHOULD THUS NOT HAVE LEAD TO A MARKED INCREASE IN THE

WORK LOADS OF THE HONG KONG OFFICE. AND IN ANY CASE IT SEEMS

UNLIKELY THAT THE HONG KONG OFFICE'S WORKLOAD WOULD HAVE INCREASED

GREATLY IN THE SHORT TIME SINCE HONG KONG WAS FORMERLY DEEMED TO

BE A GATT CP. WE THEREFORE SUGGEST THAT THIS SENTENCE BE RECAST

ALONG THE FOLLOWING LINES

11 THE WORKLOAD OF THE GENEVA OFFICE AND THE MULTILATERAL DIVIS KON

OF THE TRADE DEPARTMENT HAS INDEED INCREASED AS A RESULT OF HONG

KONG'S INVOLVEMENT IN A RANGE OF MULTILATERAL TRADE ISSUES.

STAFFING LEVELS FOR BOTH ARE KEPT CONSTANTLY UNDER REVIEW. SUCH A REVIEW OF THE STAFFING

EVANS

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

CONFIDENTIAL