TNAG-1655-FCO40-2303-Hong-Kong-and-the-Customs-Co-operation-Council-(CCC)-1987 — Page 56

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG TELNO 3001

CONFIDENTIAL

MKC 111/1

RECEIVED IN REGISTRY

19 NOV 1987

DESK OFFICER

REGISTAY

INDEX

PA

Action Taken

OF 13121OZ NOVEMBER 87

INFO IMMEDIATE PEKING

94

135204

MOHDAN 2862

Q DIST ?

HONG KONG AND ACCESSION TO CCC CONVENTIONS

1. THE CCC, THROUGH HM CUSTOMS AND EXCISE, HAVE APPROACHED US ABOUT THE APPLICATION BY YOUR COMMISSIONER OF CUSTOMS AND EXCISE TO ACCEDE TO A NUMBER OF CCC CONVENTIONS, CURRENTLY RESTRICTED TO STATE'S MEMBERS (LI'S TELEX TO DICKERSON, SEC GEN CCC OF 6 NOVEMBER). THE COMMISSIONER, IN HIS APPROACH TO THE CCC, SUGGESTED THAT THESE MATTERS COULD BE DISCUSSED AT THE NEXT MEETING OF THE CCC POLICY COMMISSION.

2.

IN CONSIDERATION OF THE COMMISSIONER'S APPROACH, THE CCC HAVE PRODUCED A DRAFT DOCUMENT WHICH THEY WOULD HOPE TO PUT TO THE POLICY COMMISSION FOR DISCUSSION. THE PAPER IS USEFUL (TEXT IN MIFT) AND IF THE RECOMMENDATION WAS IMPLEMENTED WOULD BE GOOD NEWS FOR HONG KONG. IT IS HELPFUL OF THE CCC TO CONSULT US INFORMALLY BEFORE PUTTING THE DOCUMENT FORWARD IN THE COUNCIL. IT SEEMS TO US, HOWEVER, THAT AS THE PROPOSED CHANGES ARE INTENDED TO COVER THE SITUATION CREATED BY HONG KONG'S MEMBERSHIP, THE CHINESE MIGHT LEGITIMATELY FEEL THAT THEY TOO SHOULD BE CONSULTED WE THINK THEY MIGHT TAKE IT VERY MUCH AMISS IF THE FIRST THEY LEARNED OF THIS PROPOSAL WAS THROUGH THEIR PARTICIPATION IN THE CCC. WE CONSIDER THEREFORE THAT WE SHOULD TAKE AN EARLY OPPORTUNITY TO APPROACH THE CHINESE TO EXPLAIN YOUR WISH TO ACCEDE TO THESE CONVENTIONS, THE PROBLEMS THIS RAISES IN RELATION TO THE CURRENT REQUIREMENT THAT ONLY STATES MEMBERS MAY ACCEDE, AND HOW THE CCC THINK THEY MIGHT DEAL WITH IT. WE ARE CONSIDERING WITH LEGAL ADVISERS WHETHER THE CCC APPROACH WOULD IN FACT BE PERMITTED UNDER THEIR CONSTITUTION.

3.

WE HAVE NOT YET MADE IT CLEAR TO THE CCC THAT WE SEE A NEED TO CONSULT THE CHINESE ON THEIR PROPOSAL NOW. THE CCC, HAVING RECEIVED YOUR APPLICATION CONCERNING THESE CONVENTIONS, FEEL UNDER SOME PRESSURE TO CONSIDER THE MATTER AT THE NEXT POLICY MEETING ON 9 DECMEBER, FOR WHICH PAPERS WOULD BE CIRCULATED IN ADVANCE, PROBABLY NEXT WEEK. WE SHOULD BE GRATEFUL THEREFORE FOR YOUR URGENT COMMENTS ON THE PROPOSAL TO SPEAK TO THE CHINESE ALONG THE LINES OF PARA 2 ABOVE. IF YOU AND PEKING AGREE THAT WE SHOULD DO SO, IT WOULD BE HELPFUL IF YOU COULD LET THE CCC KNOW

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CONFIDENTIAL