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Advises
No third party could therefore object if we spoke for Hong Kong. However, it seems doubtful whether our real freedom to make points at variance with EEC policy, or even in conflict with it, would be any greater than under (i) above certainly it would not if we had to clear Hong Kong à dix before making them. Unless the Community were to take a particularly co-operative and helpful attitude, therefore, it seems that both of the possibilities so far would in effect mean the extinction of Hong Kong's voice in the GATT.
(iii) Thirdly, Hong Kong could be given separate and
independent GATT representation by means of a declaration under Art XXVI: 5c that she has de facto complete autonomy in external commer- cial relationships and in other matters relevant to the GATT. She would then be deemed to be "a contracting party"
legal
only apppanchay indijacidence.
I note that you say that no de jure solution commends itself but that you do not rule out de facto independent status. From the GATT point of view, this seems the most logical and attrac- tive solution to the problem. Article XXVI: 5c says that "upon sponsorship through a declaration by a responsible contracting party" a dependent7 customs territory "shall be deemed to be a contracting party". We do not believe this Article has been so invoked before, but it appears to leave little room for argument; if the UK chose to declare Hong Kong's de facto autonomy in commercial matters, other con- tracting parties must apparently accept it. I see that there was some discussion in 1970 as to whether this Article applies to dependent territories, but we see nothing in the Article or in the Analytical Index to suggest that it does not and therefore still take Sir Eugene Melville's view that it could properly be invoked in the case of Hong Kong. Some third countries might have their doubts;
China? apart from the developing countries I have mentioned,
Japan might see in Hong Kong a significant trade rival and prefer her voice to be stilled, but even if grounds for argument existed it would be incon- sistent with Japan's general posture in GATT to
take an aggressive line on this. She might in any case see Hong Kong as a potentially useful ally.
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/(iv) There