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DD 27010OZ HONG KONG
GRS 569
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FM FCO 2613002 JUL 83
TO IMMEDIATE HONG KONG
TELEGRAM NUMBER 697 OF 26 JULY
AND TO PEKING.
7516
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Mkroach
MIPT: FUTURE OF HONG KONG: PAPER ON ECONOMIC SYSTEM
내 M CM418
TEXT OF LEGAL ADVICE IS AS FOLLOWS:
I. ONCE SOVEREIGNTY OVER THE WHOLE OF HONG KONG VESTS IN THE
CHINESE, THEY ARE INTERNATIONALLY RESPONSIBLE FOR THE TERRITORY.
IT WOULD BE POSSIBLE IN LAW FOR CHINA TO DELEGATE TO THE UK
RESPONSIBILITY FOR THE CONDUCT OF HONG KONG'S EXTERNAL RELATIONS
EITHER IN WHOLE OR IN PART. A USEFUL PRECEDENT FOR THIS VIEW LIE
IN THE ALLIED DELEGATION OF AUTHORITY TO THE FRG TO REPRESENT THE
INTERESTS OF BERLIN (WEST).
2. HOWEVER, SUCH A DELEGATION DOES NOT MEAN THAT THE CONTINUITY
OF HONG KONG'S PARTICIPATION IN OR ASSOCIATION WITH ORGANISATIONS
SUCH AS GATT OR EC WOULD REMAIN UNBROKEN IN THE EVENT OF A
TRANSFER OF SOVEREIGNTY. WE MIGHT OR MIGHT NOT BE ABLE TO
PERSUADE THEM TO ACCEPT THAT THE UK, AS A RESULT OF SUCH
DELEGATION, STILL HAD 'INTERNATIONAL' RESPONSIBILITY SEMI COLON
IE ARTICLE XXVI.5(A) OF GATT STILL KEPT HONG KONG WITHIN GATT.
ALTERNATIVELY WE COULD TRY TO APPLY ARTICLE XXVI.5(C) OF GATT WHICH
CONCERNS 'A CUSTOMS TERRITORY IN RESPECT OF WHICH A CONTRACTING
PARTY HAS ACCEPTED THIS AGREEMENT' (ARGUABLY TRUE OF HONG KONG
WHICH POSSESSES FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL
COMMERCIAL RELATIONS AND OTHER MATTERS PROVIDED FOR IN THE
AGREEMENT) SEMI COLON SUCH A TERRITORY CAN BE DEEMED TO BE A
SEPARATE CONTRACTING PARTY. THIS WAS USED FOR SOUTHERN RHODESIA
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