TNAG-2965-FCO40-4244-Future-of-Hong-Kong-Consular-representation-of-European-Coun-1993 — Page 62

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an undertaking to revise the Commission's requested list of privileges and immunities.

unequivocal acceptance that the Delegation would be set up in the first instance with privileges based on current Hong Kong law (supplemented by administrative arrangements).

a softening of the Commission's requirement for post-1997 guarantees, down to measures to put the office 'on a more stable basis before 1997'.

There are two difficult points in the speaking note. The first is the hint in paragraph 2 that the Commission might walk away from opening a Delegation in Hong Kong if the difficulties are not solved. The second, and more important, is the insistence in paragraph 3(d) that the Delegation must be set up on the basis of Cap 259 rather than Cap 190, ie equating the Delegation office to a Consulate rather than the office of an international organisation. Robert Madelin told us that the Delors Cabinet had insisted on this requirement, reflecting the views of the Commission Legal Service. (With reference to paragraph 3 of Deborah Barnes Jones' minute, Sir L Brittan's private views on this are not important: the problem is that this is the agreed position of the Commission).

4. The two-page speaking note represents the reply that the Governor gave to Delors on 2 April. This clearly rules out the use of Cap 259. But our contacts here are clear that Delors did not accept the Governor's position on this. Instead he referred delphically to the need for goodwill and flexibility (ie largely on Hong Kong's part). The line in paragraph 6 of the speaking note on post-1997 will also have disappointed the Commission. it usefully picks up Sir L Brittan's phrase about finding a more stable basis before 1997' and promises best endeavours with the Chinese Government. But, while excluding any post-1997 guarantees, the note could have pointed out that at some stage before 1997 the general question of the status of foreign representations in Hong Kong would certainly be discussed with the Chinese authorities and that the future of the EC Delegation could be wrapped up in that. The Hong Kong office here, who think that the Governor himself accepts this point (he told me that he did), are trying to clarify whether Mr Patten added this to his remarks to Delors.

5. The effect of these exchanges appears to be:

(a) the gap over specific privileges and immunities has narrowed as a result of the Commission's undertaking to revise its demands, and Hong Kong's undertaking to apply

to apply administrative flexibility: but I doubt whether the gap will have disappeared completely, given Hong Kong's continuing insistence that some important immunities, eg inviolability of the Head of Mission,

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