TNAG-1494-FCO40-2052-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 3

RESTRICTED

SAVING TELEGRAM

449

BY BAG

FROM UKMIS GENEVA

HKK.

127/1

RECEIVED IN REGISTR

19 NOV 1986

DESK OFFICER

INDEX

PA

VENUSTRY

Action Taken

TO FCO: SAVING TELEGRAM NUMBER 49 OF 12 NOVEMBER 1986

SAVING INFO: DTI, UKREP BRUSSELS, WASHINGTON, NEW DELHI,

(NEUTRAL)

BRASILIA, PEKING

-

GATT AGREEMENT ON CUSTOMS VALUATION: COMMITTEE OF

SIGNATORIES: 10 NOVEMBER 1986

SUMMARY

1.

Observer status for China generally supported but issue left for reflection at EC's request. India pressed to implement on time and Brazil to terminate new reference prices. Committee to study pricing element of Pre-Shipment Inspection following US complaint. Annual Report reflècted tone of satisfaction with Agreement.

EC COORDINATION

2. Member states confirmed the line agreed in the Article 113 Deputies in Brussels on 7 November that the EC should express disapproval over Brazil's introduction of two new reference prices immediately after stating that it had no intention to extend this practice. The EC should warn that this was a clear breach of the Code and it would revert to its rights under the Agreement if Brazil perpetuated this. On implementation of the Agreement by India, the EC should resist any slippage in the agreed completion date of1 July 1987.

13.

RESTRICTED