TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 50

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GRS 200

CONFIDENT:VAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2004

OF 2707052 JUNE 86

MENFO PRIORITY PEKING, UKMIS GENEVA

UKMIS GENEVA PLEASE-RASS COPY TO CARTLAND.

384

OUR TELNO 1697 HONG KONG AND GATT.

DUNKEL, DIRECTOR GENERAL OF GATT, HAS FOLLOWED UP THE REMARKS REPORTED #IN OUR TELEGRAM WITH A LETTER TO HO HN WHICH HE STATES :

''HONG KONG'S ACCESSION TO THE GATT, THOUGHT A FAIT ACCOMPLI,

AND HONG KONG'S EVOLUTION AS A CONTRACTING PARTY WITH HITS OWN

SPECIAL #NTERESTS AND CONCERNS REMAIN MATTERS OF ACUTE INTEREST TO MOST CONTRACTING PARTĦES. IMPLICATIONS FOR THE GATT SYSTEM, SPECIFICALLY IN THE CONTEXT OF CHINA'S BID FOR RESUMPTION OF GATT

MEMBERSHIP AND, MORE GENERALLY, IN TERMS OF PRECEDENTS THAT MAY BE ESTABLISHED FOR ACCESSIONS SIMILAR TO HONG KONG'S, ARE STILL REGARDED

BY SOME WITH A DEGREE OF UNCERTAINTY,

IT HIS EVEN MORE #IMPORTANT, THEREFORE, THAT THE #MPLEMENTATION OF THE UK-CHAINA UNDERSTANDING ON HONG KONG,' AS CONVEYED TO THE

CONTRACTING PARTHES IN THE COMMUNICATIONS OF THESE COUNTRIES SHOULD

BE SUCH AS TO CREATE AN ATMOSPHERE OF COMPLETE CONFIDENCE AND

CREDIBILITY.''

YOUDE

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH DEPT (FE)

DEP/HD/PUSD

PS/MR RENTON

MR WILSON

SIR W HARDING.

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

Confidential