CONFIDENTIAL

(M) HONG KONG'S PARTICIPATION IN INTERNATIONAL TRADING

ARRANGEMENTS

28.

The agreement provides for Hong Kong to continue to play its present important role in the GATT and any successor to the MFA. The SAR will be a separate customs territory and

enjoy its own tariff quotas. The Government will work together with the Chinese Government through the Joint Liaison Group to ensure Hong Kong's continued participation

in these bodies. In view of the international welcome the

agreement has received I have every reason to believe that our partners will be receptive and will support the maintenance of Hong Kong's position in the international

trading system.

CONFIDENTIAL

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