TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 62

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PROVIDED FOR IN THE GATT CONTAINED IN THE JOINT DECLARATION AND THE PRC DECLARATION, IN THE OPINION OF THE CHINESE GOVERNMENT THERE CAN BE NO QUESTION ABOUT THE CONTRACTING PARTY STATUS OF HONG KONG, CHINA' AFTER 1997. NEITHER THE PRESENT STATUS OF THE PRC IN RELATION TO THE GATT NOR THE PRC'S STATUS IN 1997 IS RELEVANT'. GRATEFUL FOR YOUR VIEWS ON HOW WILLING THE CHINESE MIGHT BE TO ACT IN THIS WAY, AND ON THE SORT OF STATEMENT THEY MIGHT BE PREPARED TO MAKE. WE WOULD ALSO WELCOME YOUR THOUGHTS

3.

ON HOW WE MIGHT BEST PUT THE IDEA TO THE CHINESE. WE COULD OBVIOUSLY URGE ON THEM THE MERITS OF COUNTERING THE INDIAN

STATEMENT IMMEDIATELY, FROM THE POINT OF VIEW OF BOTH HONG KONG'S AND CHINA'S LONG TERM INTERESTS.

4.

SEE MIFT.

HOWE

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

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