TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 43

CONFIDENTIAL

GRS 300

CONFIDENTIAL

FM HONG KONG

TO ROUTINE FCO

TELNO 2139

OF 050315Z JULY 86

Akk 122/1

7 JUL 1286

422

LAP COPY

INFO ROUTINE PEKING, TOKYÐ- UKMIS GENEVA WASHINGTON

UKMIS GENEVA PLEASE PASS COPY TO CARTI ANE

WASHINGTON PLEASE PASS COPY TO LO.

385

OUR TELNO 1698.

HONG KONG AND GATT : JAPANESE POSITION.

MATSUURA, JAPANESE CONSUL GENERAL, CALLED ON OUR SECRETARY FOR TRADE AND INDUSTRY ON 4 JULY.

2. HE EXPLAINED THAT FOLLOWING FURTHER ENQUIRIES OF THE U.S. AND THE GATT LEGAL ADVISER, HIS GOVERNMENT WISHED HIM TO MAKE THREE

POINTS TO US FOR WHICH HO THANKED HIM:

A, JAPAN WELCOMED AND FULLY SUPPORTED HONG KONG'S POSITHON MIN

GATT.

B. JAPAN EARNESTLY DESIRED HONG KONG'S CONTINUING PROSPERITY AND STABILITY AS WELL AS PARTICIPATION HIN GATT BEYOND 1997, BUT SHE WAS CONCERNED THAT THE FULL REQUIREMENTS OF GATT ARTICLE XXWB(5)(C) WERE MET IN THE CASE OF OTHER CUSTOMS TERRITORIES TAKING THIS ROUTE #IN FUTURE, AND BY CHINA'S EVENTUAL DELEGATION TO THE SAR.

C. WHATEVER JAPAN'S PRIVATE RESERVATIONS THESE WOULD BE KEPT TO

THEMSELVES.

3. AS REGARDS THE FURTHER ENQUIRIES MADE BY THE JAPANESE, MATSUURA MNDICATED THEY HAD APPROACHED BOTH STATE DEPARTMENT AS WELL AS USTR

AND HAD COME AWAY WITH THE IMPRESSION THAT THE U.S. POSITION

REGARDING THE SAR'S POST 1997 POSHTION #N GATT LACKED CLARMITY. LANDEN, THE GATT LEGAL ADVISER, ON THE OTHER HAND, WAS QUITE CERTAIN THAT THE CHANGE OF SOVEREIGNTY IN 1997 WOULD NOT AFFECT HONG KONG'S CONTINUING GATT STATUS ON ACCOUNT OF THAT CHANGE.

4. MATSUURA ALSO ASKED WHETHER WE KNEW THE REASONS FOR THE #INDHAN STANCE. HO CONFESSED WE HAD NO IDEA AND WERE ALSO LEFT GUESSHING.

YOUDE

HONG KONG AGREEMENT: RESTRICTED

LIMITED

COPIES TO:

HD/HKD

HD/FED

DEP/HD/PUSD

RESEARCH DEPT (FE)

PS/MR RENTON

SIR W HARDING MR WILSON

MR FIFOOT, LEGAL ADVISERS

CONFIDENTIAL