TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 66

GRS 190

CONFIDENTIAL

FM UKMIS GENEVA

TO PRIORITY FCO

TELNO 330

CONFIDENTIAL

-40

MICK 122/

COPY

OF 181059Z JUNE 1986

#NFO PRIORITY/HONG KONG, NEW DELHI, TOKYO

368

OUR TELNO 278: HONG KONG AND GATT: GATT COUNCIL 17 JUNE

1.

UNDER **ANY OTHER BUSINESS'' AT YESTERDAY'S GATT COUNCIL MEETHING

MINDA MADE A FURTHER STATEMENT TO FOLLOW THAT REPORTED IN OUR TUR.

2. RANDHAWA (INDIA) SAND THAT WHILE HIS AUTHORITIES RECOGNISED HONG

KONG'S CURRENT STATUS AS A CONTRACTING PARTY TO GATT THEY HAD

DIFFICULTY IN ACCEPTING THE POSITION POST-1997 ON THE BASIS OF

CHINA'S DECLARATHON TO THE DIRECTOR-GENERAL OF GATT. THIS WAS

BECAUSE CHINA WAS NOT A CP., MOREOVER THE EXACT STATUS OF HONG KONG WHEN THE PRC RESUMES SOVEREIGNTY IN 1997 HS NOT CLEAR. THEY

THEREFORE WISHED TO RESERVE THEIR GATT RIGHTS WITH EFFECT FROM 1 JULY 1997. (FULL TEXT OF STATEMENT MUFAXED TO HONG KONG DEPARTMENT).

3.

NOBODY ELSE SPOKE AND THE CHAIRMAN ANNOUNCED THAT THE COUNCIL

**TOOK NOTE' OF #NDIA'S STATEMENT.

COMMENT

4. #INDIA'S STATEMENT CAME AS A SURPRISE. THEY HAD NOT #NFORMED THE

GATT SECRETARIAT OF THEIR INTENTIONS. WHILST THERE WAS NO NEED FOR

US TO RESPOND THE CHINESE HAD EVERY REASON TO SHINCE THE STATEMENT CALLED INTO QUESTION THEIR FUTURE INTENTMONS. THE FACT THAT THEY CHOSE TO REMAIN SILENT PROBABLY REFLECTS THE FACT THAT THEY WERE

TAKEN ABACK, BUT THEY MAY WELL REVERT TO THIS AT THE NEXT, OR A

FUTURE MEETHING.

SANKEY

HONG KONG AGREEMENT: RESTRICTED

LIMITEND

HD/HKD

HD/FED

RESEARCH D (FE)

DEP/HD PUSD PS/MR RENTON MR WILSON

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

CONFIDENTIAL