TNAG-1494-FCO40-2052-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 54

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Communist Party remained in control of the Administration: the technocrats had a weak power base. There was comparatively little time left to make this initiative a success.

9.

Much of this discourse, though informative, was pretty general and I dare say very optimistic about the likely development of Chinese economic and political thinking on the implications of GATT membership. But I have recorded it at some length because it seems to me the most comprehensive account of where the Chinese currently stand on this issue. I encouraged McDonnell to make contact with you if at all possible - he leaves London on 16 September, but will be returning towards the end of the week.

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D A Warren

European Community Department

(External)

Cc:

A W Dell Esq, UKMis Geneva Miss R Spencer, UKRep Brussels DJ Plumbly Esq, Washington

H Davies Esq, Peking

P A Cocking Esq, MAFF

M Jay Esq, Cabinet Office

Mr Hum, HKD

Mr Masefield, FED

Mr Hallett, Economic Advisers

Mr Clark, Research Dept

P.S I explained, incidentally, that GATT experts were rather thin on the ground in London with the Ministerial underway in Punta del Este. He commented, not directly a propos of that, that one of the problems of the Chinese system for other countries was that it was never very easy to find the right person to talk to. There were after all 1.6 million civil servants in MOFERT - although a mere 154 of them were currently working on the GATT question

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