CONFIDENTIAL
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THE MFA AND OTHER INTERNATIONAL ARRANGEMENTS.
(B) TO ENSURE THE CONTINUED APPLICATION TO THE HONG KONG SAR OF
INTERNATIONAL RIGHTS AND OBLIGATIONS AFFECTING HONG KONG.
THE PURPOSE OF THIS MEMORANDUM IS TO SEEK MEMBERS' ADVICE ON THE
BEST COURSE TO BE TAKEN TO SECURE HONG KONG'S CONTINUED
PARTICIPATION IN THE GATT AND THE CCC BEYOND 30 JUNE 1997.
PARTICIPATION IN THE GATT
HONG KONG'S PRESENT STATUS
4.
HONG KONG DERIVES ITS GATT RIGHTS AND OBLIGATIONS FROM ITS
STATUS AS A DEPENDENT TERRITORY OF THE UNITED KINGDOM. THE UK
HAS ACCEPTED THE GATT IN RESPECT OF TERRITORIES FOR WHICH IT HAS
INTERNATIONAL RESPONSIBILITY. AS A RESULT OF THE CHANGE OF
SOVEREIGNTY ON 1 JULY 1997, HONG KONG'S STATUS IN THE GATT WILL
CEASE UNLESS SOME MEANS CAN BE FOUND TO TRANSMIT SUCH STATUS TO
THE SAR.
CHINA'S PRESENT STATUS
5.
CHINA IS NOT CURRENTLY A MEMBER OF THE GATT. HOWEVER, SHE
ATTENDS GATT MEETINGS AS AN OBSERVER AND HAS ANNOUNCED HER
INTENTION OF APPLYING, EVENTUALLY, FOR FULL GATT MEMBERSHIP.
IRRESPECTIVE OF THE METHOD BY WHICH CHINA MIGHT EVENTUALLY SEEK
ACCESSION TO THE GATT, IT IS BELIEVED THAT SOME DEVELOPED Contranting Panties
COUNTRIES WOULD TAKE THE LINE THAT CHINA'S ACCESSION WOULD HAVE
TO BE ON TERMS WHICH SATISFACTORILY MITIGATED THE ECONOMIC
DISADVANTAGES OF HER PARTICIPATION.
TO BE LONG DRAWN OUT.
NEGOTIATIONS WOULD BE LIKELY
POSSIBLE OPTIONS FOR HONG KONG'S CONTINUED PARTICIPATION IN THE
GATT
6. THERE ARE, IN ESSENCE, THREE BASIC OPTIONS:
OPTION 1: HONG KONG TO MAINTAIN THE UNDERLINE NEXT TWO
WORDS STATUS QUO UNTIL 1997 WHEN CHINA, AS THE METROPOLITAN
POWER, WOULD ACCEPT THE GATT IN RESPECT OF HONG KONG AS A
TERRITORY FOR WHICH IT HAS INTERNATIONAL RESPONSIBILITY:
OPTION 2: HONG KONG TO SEEK TO ACCEDE TO THE GATT ON TERMS TO BE
AGREED WITH THE CONTRACTING PARTIES IN ACCORDANCE WITH GATT
ARTICLE XXXIII:
OPTION 3: PRIOR TO JUNE 1997, HMG TO DECLARE, IN ACCORDANCE WITH
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