PARTICIPATION IN THE GATT
HONG KONG'S PRESENT STATUS
CONFIDENTIAL
its
4. Hong Kong derives its GATT rights and obligations from
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 I July 1997, Hong Kong's status in the GATT will
cease unless some means c an 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 s ome developed countries would take
take the
line that China's accession would have to be on terms which
satisfactorily mitigated the economic disadvantages of her participation. Negotiations would be likely to be long drawn out.
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 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
GATT Article XXXIII;
Parties in accordance
with
CONFIDENTIAL