TNAG-2966-FCO40-4245-Future-of-Hong-Kong-Consular-representation-of-European-Coun-1993 — Page 116

CONFIDENTIAL

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I am pleased to inform you that we would be prepared to confirm our agreement on this matter by means of an Exchange of Letters along the lines of the drafts attached. I must, however, draw your attention again to the fact that the agreement will be effective up to and including 30 June 1997 only. The grant of privileges and immunities to the Commission's Office in Hong Kong after that date is a matter that will need to be taken up by the European Communities with the People's Republic of China (PRC) in due course.

As we indicated during our meeting in July, we would be happy to assist by giving advice, at the appropriate time, on the timing and strategy for consultations with the PRC. The Chinese may themselves take the initiative to raise this when they learn of the proposed Office. They are likely to reiterate their general position that privileges and immunities in Hong Kong after 1997 are entirely a matter for them, and that they will not be bound by whatever arrangements applying before 1997. Our assessment at this stage is that the more of a "special case" we make of the EC Office, the less likely the arrangements are to survive.

I very much hope that our proposed draft exchange of letters and its accompanying annex will be acceptable to your authorities and that the Office of the Commission can be

established as soon as possible in Hong Kong.

I look forward to hearing from you.

Yours sincendly веднер

(Mrs Regina Ip)

for Secretary for Trade and Industry

cc

SREEC

CONFIDENTIAL