TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 43

CONFIDENTIAL FM FCO

TO IMMEDIATE HONG KONG

TELNO 846

OF 30140OZ MARCH 88

INFO IMMEDIATE PEKING

CONFIDENTIAL

HKC 102/1

AR 1988

PRICES

PA

42

TOP COPY 036225 Q DISTMOROAN 3152

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PEKING TELNO 573 AND YOUR TELNO 1264:

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MIGA

1. WE UNDERSTAND YOUR HESITATIONS IN SECOND TUR ABOUT THE WORDING OF THE CHINESE RESPONSE RECORDED IN FIRST TUR. HOWEVER IT SEEMS TO US THAT THE CHINESE SIDE ARE NOT (NOT) NECESSARILY

SEEKING TO MAKE IT A CONDITION FOR THE APPLICATION OF THE

CONVENTION TO THE SAR AFTER 1997 THAT THE PRC SHOULD HAVE BECOME A PARTY TO IT. RATHER, THIS IS PROBABLY A CASE OF LAX WORDING. WE DO NOT (NOT) READ ANYTHING SINISTER INTO IT. IN ANY EVENT

(PARA 3 OF PEKING TUR), IT SEEMS LIKELY THAT THE PRC WILL INDEED BECOME A PARTY TO THE CONVENTION BY 1997. IT IS CLEAR THAT, IRRESPECTIVE OF THE PRC'S POSITION THEN, THE CONTINUED APPLICATION OF THE CONVENTION TO HONG KONG WILL HAVE TO BE

DISCUSSED IN DUE COURSE IN THE JLG SUBGROUP ON IROS.

2. MOREOVER, GIVEN WANG WEIYANG'S REPUTATION AND EARLIER EXCHANGES ON OTHER SUBJECTS, WE FEAR THAT TO REVERT TO THE CHINESE, IN WHATEVER TERMS, WOULD BE LIKELY TO PROVOKE THE STERILE DEBATE YOU ARE KEEN TO AVOID. THERE COULD BE A RETURN TO

THE TOING AND FROING OVER THE CONVENTION ON THE PROTECTION OF THE

OZONE LAYER.

3.

IN ADDITION, WE HAVE SOME DOUBTS, ON THE BASIS OF A QUICK REREADING OF THE CONVENTION, THAT IT WOULD BE POSSIBLE READILY TO FIND WAYS FOR THE CONVENTION TO CONTINUE TO APPLY TO THE HONG KONG SAR EVEN IF THE PRC DECIDES NOT TO APPLY IT TO THE WHOLE OF

THE PRC.

4.

FOR ALL THESE REASONS, WE SHOULD PREFER, UNLESS YOU HAVE PARTICULARLY STRONG VIEWS, NOT (NOT) TO REVERT TO THE CHINESE ON THIS, BUT SIMPLY TO TACKLE THE CONVENTION IN DUE COURSE IN THE

IRO SUBGROUP.

HOWE

YYYY

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CONFIDENTIAL