TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 70

χ

нки

1221

United Kingdom Mission

37-39 rue de Vermont 1211 Gede 1986

Telex 22956

Telegrame Prome Geneva

Telephone 34 38 00 33 28.85ms

Relps

hilpa Go2

Monday

with 'x.

Mistich

Your reference

402

t

Wardly feraft looks on 7PX-9/6

Date 2 June 1986

RP Madelin Esq

ITP1

Department of Trade and Industry

1 Victoria Street

LONDON

SW1

Dear Robert

GATT: 1986 BUDGET CONTRIBUTIONS

1.

Our reference

Further to my letter of 21 May I have now received a formal request (copy attached) from the GATT Secretariat for a revised contribution to take account of a separate contribution being paid by Hong Kong. As you will see the procedures envisaged by the Secretariat are those foreshadowed in my letter, with the slight embellishment that, after approval by the Budget Committee, there will be a formal recommendation to the Council. This last point matters a good deal less now that the first Council meeting following Hong Kong's assumption of separate CP status has taken place.

2.

It is for you to decide whether we should pay now or await the completion of all the procedural formalities before settling our account. There would appear to be some small advantage presentationally in paying quickly, at least in terms of our policy of continuing the pressure in the Budget Committee on other CPs with outstanding contributions.

3.

You will also note that there is no mention of any further contributions from the UK to the Working Capital Fund so it would seem that we have managed to head off the GATT Secretariat from this

course.

4.

The remaining matter is the language of the recommendation to the Budget Committee. As you will see from the draft some changes have already been made to the earlier draft which I attached to my letter of 21 May. These are, to my mind, for the better and, subject to any views from Mike Hill in Hong Kong Department, to whom I am copying this letter, I think we could accept this version.

Yours

cc: D Warren Esq, ECD(E), FCO

A W Dell

M Redley Esq, HM Treasury M Hill Esq, Hong Kong Dept, FCO