TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 97

CONFIDENTIAL

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1

3.

TO TOKYO TO TAKE THIS UP WITH JAPANESE, POINTING OUT THAT WE BELIEVE THERE IS NO QUESTION OF HONG KONG'S CP STATUS BEING AFFECTED BY 1997 CHANGEOVER. SUBSEQUENT LINE FROM JAPANESE RATHER MORE ENCOURAGING. BELIEVE IT WOULD BE

HELPFUL TO REINFORCE THIS BY SPEAKING TO JAPANESE IN

PEKING AND LONDON RESPECTIVELY AND ALSO IN GENEVA. VERY MUCH IN SPIRIT OF JOINT LOBBYING EXERCISE PRIOR TO DECLARATIONS. HOPE THE CHINESE AGREE TO THIS. CAN THEN

COORDINATE OUR APPROACHES.'

WE SUSPECT THE CHINESE WILL ASK IN WHAT TERMS WE PROPOSE TO SPEAK TO THE JAPANESE. IN THAT CASE WE WOULD HAVE NO OBJECTION, SUBJECT TO HONG KONG'S VIEWS, TO YOUR HANDING THEM THE GOVERNOR'S SPEAKING NOTE IN HONG KONG TELNO 1634 AND SAYING THAT WE INTENDED TO FOLLOW THAT LINE. YOU COULD ADD THAT IT WOULD OBVIOUSLY BE HELPFUL IF THE CHINESE WERE TO TAKE A SIMILAR, BUT

NOT NECESSARILY IDENTICAL, LINE.

4.

WE ACCEPT NEW DELHI'S RECOMMENDATION THAT WE SAY NOTHING

FURTHER TO THE INDIANS FOR THE MOMENT.

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

Confidential