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Growing HK trade with China. In 1981 21.3% of HK's imports came
from China (second major supplier).
3.6% of HK's exports and
19.3% of HK's re-exports went to China.
Most of HK's trading partners require goods manufactured in, and
exported from, Hong Kong to be supported by certificates of Hong Kong
origin. These need not be issued by Government bodies.
Possible Changes
The key question is whether the Chinese would permit Hong Kong to
continue to operate an independent external trade policy. It seems
reasonable to expect so; it would be essential for continued prosperity
If that were accepted, the UK could obtain for Hong Kong a GATT status
fully equivalent to that of a Contracting Party, perhaps preferably
at an early stage of any changes in constitutional arrangements.
Maintaining Hong Kong's GATT status is important, otherwise it might
get worse treatment from, especially, the US, than it gets now.
Hong Kong could then speak for itself in the GATT (though probably
not in other less important fora more strictly based on independent
sovereignty). Once the Chinese accept a continuing independent
commercial policy can accompany Chinese sovereignty, it should be
possible to set up the arrangements for continuing UK administration,
or for designation as an SAR, so as to enable Hong Kong to operate
effectively in the GATT and in its conduct of bilateral relations in
the trade policy field with other GATT Contracting Parties.
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