TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 173

OCMIAN 36809

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PP PEKIN

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141000Z MAY

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RECE VED IN AFS ST

2 MAY 1986

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339 TOP COPY

36809 1

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FM FCO

TO PRIORITY NEW DELHI

TELNO 535

OF 141000Z MAY 86

INFO PRIORITY UKMIS GENEVA, HONG KONG, PEKING

(335)

YOUR TELNO 673: HONG KONG AND THE GATT

1.

SUBJECT TO ANY VIEWS UKMIS GENEVA MAY HAVE, WE AGREE THAT YOU SHOULD TAKE AN EARLY OPPORTUNITY TO SET THE RECORD STRAIGHT WITH THE INDIANS. POINTS (A)-(E) IN PARA 3 OF TUR LOOK TO US VERY MUCH ON THE RIGHT LINES. THE ONLY CHANGE WE WOULD SUGGEST IS THAT IN (A) YOU COULD PERHAPS POINT OUT THAT THE JOINT DECLARATION IS AN AGREEMENT REGISTERED BY THE TWO SIGNATORIES AT THE UN AND BINDING IN INTERNATIONAL LAW. WE WOULD ALSO SEE SOME ADVANTAGE IN ANSWERING DIRECTLY THE QUESTION 'HOW WOULD HONG KONG BE ABLE TO FULFIL ITS OBLIGATIONS?' RAISED BY ABHYANKAR (END OF PARA 1 OF TUR). WE SUGGEST SOMETHING LIKE: 'HONG KONG WOULD BE ABLE TO FULLFIL ITS GATT OBLIGATIONS IN EXACTLY THE SAME WAY AS ANY OTHER CONTRACTING PARTY. HONG KONG'S STATUS BOTH AS DEPENDENT TERRITORY AND SAR IS IRRELEVANT IN THIS RESPECT AS IT ENJOYS FULL AUTONOMY IN EXTERNAL COMMERCIAL RELATIONS NOW AND WILL DO SO AFTER 1997. THIS WAS MADE QUITE CLEAR IN BOTH THE UK AND PRC DECLARATIONS TO THE GATT.'

HOWE

HONG KONG AGREEMENT : RESTRICTED

LIMITED

HD/HKD

HD/FED

COPIES TO:

-

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

RESEARCH D (FE)

DEP/HD PUSD

PS/MR RENTCN MR WILSON

CONFIDENTIAL