TNAG-1494-FCO40-2052-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 11

GRS 380

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445

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FM UKMUS GENEVA

TO #MMEDIATE FCO

TELNO 584

OF 05171OZ NOVEMBER 1986

AND TO NIMMEDIATE DTIN

BINFO IMMEDIATE WASHINGTON, UKREP BRUSSELS UKDEL OECD PARUS

(NEUTRAL)

GATT ORGANISATION OF URUGUAY ROUND

SUMMARY

1.

HAUR 122/1

WEDY.

- 7 NOV 1936

DEAK OF

INDEX

wt.on Taken

INTENSIVE NEGOTINATIONS ARE CONTHNUING TO TRY TO FINALISE ORGANISATIONAL ASPECTS OF URUGUAY ROUND BEFORE GROUP ON GOODS (GNG) MEETING ON 7 NOVEMBER. BRAZIL INSHISTHING THAT THE DEAL INCLUDES SPECHFHIC DETAILS ON SURVEILLANCE MECHANISM.

DETAHL

2. A SERVES OF INFORMAL CONSULTATIONS ORGANISED BY DUNKEL HAS SO FAR FAILED TO RESULT IN AGREEMENT WHICH WOULD ENABLE THE GNG TO TAKE DECISIONS ON ORGANESATIONAL ASPECTS OF THE URUGUAY ROUND. THE #SSUE OF THE NUMBER OF GROUPS US NOT SETTLED BUT THERE IS AN UNDERSTANDING THAT 8 GROUPS WILL BE ESTABLISHED INITIALLY {AGRICULTURE: SUBSIDIES AND COUNTERVAULING, MARKET ACCESS (INCLUDING QRS, NTMS AND TARIFFS): TROPICAL PRODUCTS: GATT ARTICLES, MTN AGREEMENTS AND DISPUTE SETTLEMENTS; BINTELLECTUAL PROPERTY (INCLUDING COUNTERFEIT): SAFEGUARDS: AND HNVESTMENT MEASURES) WITH THE POSSIBULANTY OF SUBSEQUENT ADDITIONS TO THE LIST (DRAFT CHARMANTS STATEMENT REFLECTING THIS UNDERSTANDING MUFAXED TO MADELHIN, DT:1). HINCLUDED IN THE UNDERSTANDING

HIS THE POSSIBILITY OF ESTABLISHING A TEXTULES GROUP AS THE NEED ARISES WHICH WOULD SATISFY HNDINA.

3. THE MAIN STUMBLING BLOCK HOWEVER IS THE ESTABLISHMENT OF A MECHANISM FOR SURVEILLANCE OF STANDSTILL AND ROLLBACK. BRAZUL HAS #INSISTED NOT ONLY THAT THIS SHOULD BE INSTITUTED AT THE SAME TIME AS OTHER ORGANISATIONAL DECISIONS BUT THAT THERE SHOULD BE A DETAILED PLAN OF HOW IST WOULD WORK. BRAZIL HAS RECEIVED SOME SUPPORT FROM

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