CONFIDENTIAL
we re to be terminated would there be any question of a suspension or
termination of such status. This happened when Southern Rhodesia
issued its unilateral Declaration of Independence and the UK
withdrew from the GATT in respect of that country.
Even SO it
remained unclear whether Southern Rhodesia's GATT status had really
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 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
partners that the basis for Hong
Kong's flourishing free market ec on omy will be able to continue.
Moreover, it would be advantageous for Hong Kong to secure its
future position wi thin
the GATT before too much attention is
focussed on China's separate intentions. (See para 5 above).
THE PROPOSED PROCEDURE
-
14.
Accordingly,
and to do SO as
recommendation
it would be simplest and safest to adopt Option 3
soon as possible. This will require an early
to the FCO for submission to Ministers.
procedure envisaged would entail:
(a)
(b)
The
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 be deemed to
be a fully Contracting Party;
a statement from Hong Kong to the GATT saying it wished
become a Contracting Party; and
to