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SECRET
(CONFIDENTIAL OTHER THAN PARAS 6 - 8)
:
THE FUTURE OF HONG KONG
BACKGROUND
RATIFICATION OF HONG KONG AGREEMENT
1. Ratification of the Hong Kong agreement took place on 27 May. Instruments exchanged in Peking. Agreement entered into force on
that date.
JOINT LIAISON GROUP
2.
First meeting of Joint Liaison Group will be in London between 22 and 25 July. Main subject on agenda will be Hong Kong and the GATT. We have undertaken to submit to the Chinese prior to the first meeting a paper of proposals on how to secure Hong Kong's continued participation after 1997. The paper will propose an early declaration by the UK to the GATT (supported by Hong Kong and if possible by China) to the effect that Hong Kong enjoys autonomy in the conduct of her external commercial relations and should be deemed to be a separate Contracting Party with immediate effect. The Chinese have told us that they will not create any difficulties for us over the GATT. But just possible that they could argue for Hong Kong to participate in the GATT after 1997 under a Chinese umbrella (assuming China has joined the GATT by then) rather than as a separate Contracting Party.
BASIC LAW DRAFTING COMMITTEE
3.
Chinese National People's Congress decided in April to establish a Basic Law drafting committee which will include "personages and specialists from all walks of life including Hong Kong compatriots". Names likely to be announced later this year. The Director of the Hong Kong branch of the New China News Agency told the Governor in May that members of UMELCO and the Hong Kong judiciary will be
included. This is welcome.
FUTURE OF MACAU
4. The PRC and Portugal announced in late May that they will enter diplomatic talks "in the near future to resolve
future to resolve the question of
SECRET
(CONFIDENTIAL OTHER THAN PARAS 6 - 8)