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THE UK WITHDREW THAT TERRITORY'S MEMBERSHIP OF THE GATT. EVEN SO
IT REMAINED UNCLEAR WHETHER SOUTHERN RHODESIA'S GATT STATUS HAD
IN FACT BEEN SUSPENDED. THE GATT RETAINED THE NAME OF SOUTHERN
RHODESIA IN ITS DOCUMENTATION. IT ALSO CONTINUED TO ALLOCATE
PAPERS WHICH, ALTHOUGH NOT DESPATCHED TO SOUTHERN RHODESIA, WERE
HELD IN STORE IN THE GATT PENDING SOME RESOLUTION OF THE
SITUATION.
TIMING
13. IN VIEW OF PARAGRAPH 4 OF ANNEX 2 TO THE JOINT DECLARATION,
WE WISH HONG KONG'S CONTINUING PARTICIPATION IN THE GATT AND CCC TO
BE ADDRESSED AT THE FIRST MEETING OF THE JLG AND HAVE AGREED WITH
THE CHINESE THAT WE WILL PRESENT THEM IN ADVANCE WITH A PAPER OF
DETAILED PROPOSALS. EARLY RESOLUTION OF THIS QUESTION WOULD
REASSURE HONG KONG AND ITS TRADING PARTNERS THAT THE BASIS FOR
HONG KONG'S FLOURISHING FREE MARKET ECONOMY WILL BE ABLE TO
CONTINUE. MOREOVER, IT WOULD BE ADVANTAGEOUS FOR HONG KONG TO
SECURE ITS FUTURE POSITION WITHIN THE GATT BEFORE TOO MUCH
ATTENTION IS FOCUSSED ON CHINA'S SEPARATE INTENTIONS.
5 ABOVE).
THE PROPOSED PROCEDURE
14.
(SEE PARA
ACCORDINGLY, IT WOULD BE SIMPLEST AND SAFEST TO ADOPT OPTION
3 AND TO DO SO AS SOON AS POSSIBLE. THIS WILL REQUIRE AN EARLY
RECOMMENDATION TO THE FCO FOR SUBMISSION TO MINISTERS. THE
PROCEDURE ENVISAGED WOULD ENTAIL:
(A) A DECLARATION BY HMG UNDER ARTICLE XXVI 5(C) OF THE GATT STATING THAT HONG KONG POSSESSES FULL AUTONOMY IN THE CONDUCT OF
ITS EXTERNAL COMMERCIAL RELATIONS ETC AND MAY THUS BE DEEMED TO
BE A FULLY CONTRACTING PARTY: (SUCH A DECLARATION WOULD NEED TO
BE PRECEDED BY SUCH APPROPRIATE INTERNAL STEPS AS ARE NECESSARY
TO RECONCILE HONG KONG'S PRACTICAL EXTERNAL COMMERCIAL COMPETENCE
WITH THE FORMAL LEGAL POSITION UNDER THE LETTERS PATENT).
(B) A STATEMENT FROM HONG KONG TO THE GATT SAYING IT WISHED TO
BECOME A CONTRACTING PARTY: AND
(C) A STATEMENT FROM CHINA TO THE GATT REFERRING TO BOTH (A) AND (B) ABOVE, AND TO THE JOINT DECLARATION AND CONFIRMING THAT
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WHEN ON 1 JULY 1997 HONG KONG BECOMES A SAR OF THE PR, HONG KONG
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