TNAG-1494-FCO40-2052-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 4

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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3. On the re-opening of prices under Pre-Shipment Inspection (PSI), EC support for the US complaint was agreed as in Article 113 Deputies on 7 November (see Bartlett/Stone (DTI) letter of 10 November). FRG and UK again urged support for the US who had doubted that PSI complied with the Agreement. France unexpectedly gave strong support. Although no country using PSI was yet a signatory, concern had to be registered in the Committee. Casey (Commission) thought that the issue had to be seen in a broader context and doubted specific relevance of the Agreement, eg. Article 6.2. On observer

status for China, the Commission would ask. for time to consider positively. This was the first Tokyo Round Code Committee to meet since China had requested representation on several Tokyo Round Codes.

DETAIL

China: Observer Status

4.

The Chairman (Nicora, France) reported a request from the People's Republic of China for representation in the Committee. Assuming this meant observer status, Australia, Japan, New Zealand, Hungary, Czechoslovakia, the US, Yugoslavia, Canada, India, the Nordics and Romania expressed support and welcomed the greater understanding that would result, although some stressed that full accession would require careful consideration. The EC and Brazil asked for time for reflection, which would be positive. Switzerland wondered if China's request to the Committee should be considered by all Contracting Parties (CPs).

The Chairman concluded that the Committee should consider

this further at the next meeting.

INDIA: IMPLEMENTATION

5. Randhawa (India) reported elements of implementation, eg. training of staff, but could not confirm, in face of US and EC scepticism, that this would be completed as required on 1

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