}
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AND COULD CONCEIVABLY FIT WITH SOME HONG KONG ARRANGEMENTS. 3. HONG KONG IS WITHIN GATT AS A RESULT OF ITS CONNEXION WITH
THE UK. THE UK APPLIED THE AGREEMENT TO HONG KONG UNDER ARTICLE XXVI.5(A) ON THE BASIS OF THE UK'S 'INTERNATIONAL RESPONSIBILITY' FOR HONG KONG. ON A TRANSFER OF SOVEREIGNTY TO CHINA THE UK
WILL CEASE TO HAVE SUCH RESPONSIBILITY. RESPONSIBILITY FOR
EXTERNAL AFFAIRS AS SUCH DOES NOT AMOUNT TO INTERNATIONAL
RESPONSIBILITY. THE RESULT WOULD BE THAT ON A TRANSFER OF
SOVEREIGNTY THE PRESENT BASIS FOR HONG KONG'S PARTICIPATION IN
GATT WOULD CEASE, AND A NEW BASIS WOULD HAVE TO BE NEGOTIATED.
THEREFORE, ANY ARRANGEMENT BETWEEN THE UK AND CHINA AS CONSIDERED IN PARA 1. ABOVE WOULD BE SUBJECT TO THE SCRUTINY
OF THE GATT ON AN APPLICATION BY THE UK FOR HONG KONG PARTICIPATION.
AS A RESULT THE APPLICATION WOULD BE SUBJECT TO THE COMMERCIAL
WISHES OF THOSE PARTIES, INCLUDING THEIR POSSIBLE HOSTILITY. 4. HONG KONG HAS NO SPECIAL RELATIONSHIP WITH THE EC. ITS
EXPORTS PAY THE COMMON COMMERCIAL TARIFF. IT IS INCLUDED IN REGULATION 288/82 WITH THIRD COUNTRIES OTHER THAN THE STATE
TRADING COUNTRIES AND CHINA. EXPORTS FROM CHINA ARE
GOVERNED BY REGULATION 1766/82.
WE MIGHT WISH TO MAINTAIN THIS
POSITION RATHER THAN ALLOW HONG KONG IT TO BE GIVEN TREATMENT AS PART OF CHINA. BUT SUCH A MAINTENANCE OF POSITION COULD BE DECIDED
BY THE EC COUNCIL, IF CHINA DID NOT INSIST THAT IT WAS PART
OF CHINA.
5. IN VIEW OF THE ABOVE IT WOULD APPEAR THAT MUCH GREATER STUDY
OF THIS IS NECESSARY BEFORE WE PLACE TOO MUCH RELIANCE ON THE GATT
LINK AS AN ARGUMENT FOR RETAINING ADMINISTRATIVE RESPONSIBILITY.
SOME GATT MEMBERS MAY ARGUE THAT THE LINK MAY BE BROKEN BY A
CHANGE OF SOVEREIGNTY. A PREMATURE STATEMENT TO SUCH EFFECT MAY
WELL INVITE THE CHINESE ENQUIRY AS TO WHETHER OUR GATT PARTNERS
WOULD WELCOME SUCH AN ARRANGEMENT.
6.
IN THE MEANTIME, IT IS USEFUL TO RECALL THAT CHINA IN 1947
WAS A SIGNATORY TO THE GATT AGREEMENT PROVISIONAL PROTOCOL.
HOWE
FUTURE OF HONG KONG
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