TNAG-2964-FCO40-4243-Future-of-Hong-Kong-Consular-representation-of-European-Coun-1993 — Page 89

CONFIDENTIAL

052444 MDLAN 7041

UNLIKELY THAT WE COULD SECURE QUICK CHINESE AGREEMENT TO ANY ARRANGEMENT THAT WOULD CONTINUE AFTER 1997, REGARDLESS OF WHAT LEGAL VEHICLE FOR THE OFFICE IS EVENTUALLY AGREED WITH THE EC. WE THEREFORE THINK THAT, SHOULD THE EC AGREE TO PROCEED ON THE BASIS OF CAP.190, AND ONCE EXCO HAVE APPROVED THIS, WE SHOULD INFORM THE CHINESE OF THE ESTABLISHMENT OF THE OFFICE AND OF THE PRIVILEGES AND IMMUNITIES THAT WILL BE OFFERED TO IT, SHORTLY BEFORE ANY EXCHANGE OF NOTES WITH THE EC. IN DOING SO WE SHOULD STRESS THAT:

A) THE EC ARE PRESSING US TO MAKE PRIVILEGES AND IMMUNITIES AVAILABLE TO THE OFFICE WITHOUT DELAY AND WE THINK IT REASONABLE TO ACCEDE TO THIS REQUEST:

B) WE HAVE MADE IT CLEAR TO THE EC THAT THE ARRANGEMENTS FOR THE OFFICE APPLY UP TO 30 JUNE 1997 ONLY AND THAT POST 1997 ARRANGEMENTS WILL BE A MATTER FOR THE CHINESE SIDE: THEY UNDERSTAND AND ACCEPT THIS:

C) WE INTEND AT THE APPROPRIATE TIME TO CONSULT THE CHINESE ABOUT THE POST 1997 ARRANGEMENTS, WITH A VIEW TO SECURING THE CONTINUATION OF THE OFFICE IN HONG KONG AFTER 1997, WHICH IS CLEARLY IN HONG KONG'S INTERESTS.

15. WE WOULD PREFER OUR ECONOMIC AND TRADE OFFICE IN BRUSSELS TO REMAIN THE MAIN CONTACT POINT WITH THE EC FOR DETAILED DISCUSSION ON THE EXACT PRIVILEGES AND IMMUNITIES FOR THE OFFICE AND THE PROCEDURES TO SECURE THEM. NEVERTHELESS, WE WOULD APPRECIATE IF UK REP BRUSSELS COULD INDICATE AT A SENIOR LEVEL TO THE EC THAT CAP.190 WAS THE ONLY FEASIBLE WAY FORWARD AND THE DIFFICULTIES WHICH WE WOULD HAVE WITH A TAILOR-MADE LEGISLATION FOR THE EC OFFICE.

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16.

THE EC HAS LEASED PREMISES FOR THE OFFICE AND WRITTEN TO OUR SECRETARY FOR THE TREASURY SEEKING EXEMPTION FROM RATES AND STAMP DUTY. WE WERE INFORMED OF THESE DEVELOPMENTS SHORTLY BEFORE OUR MEETING WITH BORRELL.

17. WE THINK THE ABOVE ANSWERS THE POINTS RAISED IN RICKETTS' LETTER OF 4 JANUARY TO DINHAM.

PATTEN

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