GR 2500

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 020845Z MAY 85

TO PRIORITY FCO

TELEGRAM NUMBER 338 OF 2 MAY

Merised that

INFO PRIORITY PEKING, UKMIS GENEVA, UKREP BRUSSELS, BRUSSELS (FOR JONES), WASHINGTON

INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON

ніккофори

53

MIPT

HONG KONG'S FUTURE POSITION IN THE GENERAL AGREEMENT ON TV

AND TRADE AND THE CUSTOMS CO-OPERATION COUNCIL.

INTRODUCTION

DURING THE SINO-BRITISH TALKS ON THE FUTURE OF HONG KONG, THE FUNDAMENTAL IMPORTANCE TO HONG KONG'S ECONOMIC PROSPERITY OF THE

GATT, IN PARTICULAR THE MOST-FAVOURED-NATION RIGHTS OF ACCESS FOR ITS GOODS, WAS EXPLAINED TO THE CHINESE SIDE. THE CHINESE SICE READILY AGREED THAT ARRANGEMENTS WOULD NEED TO BE MADE TO ENSURE

THAT THE POSITION OF HONG KONG COULD CONTINUE TO BE EFFECTIVELY REPRESENTED AND EXPRESSED WITHIN THE INSTITUTIONS OF THE GATT.

2. IN REFLECTION OF THIS AGREEMENT, SECTION VI OF ANNEX TO THE SINO-BRITISH JOINT DECLARATION ON THE QUESTION OF HONG KONG PROVIDES THAT THE SAR SHALL BE A SEPARATE CUSTOMS TERRITORY AND THAT THE SAR

MAY PARTICIPATE IN RELEVANT INTERNATIONAL ORGANISATIONS AND INTER- NATIONAL TRADE AGREEMENTS.

3.

PARAGRAPH 4 OF ANNEX 11 TO THE JOINT DECLARATION LISTS, AMONG THE MATTERS FOR EARLY CONSIDERATION BY THE JLG, ACTION TO BE TAKEN BY THE TWO GOVERNMENTS

(A) TO ENABLE THE HONG KONG SAR TO MAINTAIN ITS ECONOMIC RELATIONS AS A SEPARATE CUSTOMS TERRITORY, AND IN PARTICULAR TO ENSURE THE MAINTENANCE OF HONG KONG'S PARTICIPATION IN THE GATT, THE MFA AND OTHER INTERNATIONAL ARRANGEMENTS:

(3) TO ENSURE THE CONTINUED APPLICATION TO THE HONG KONG SAR

OF INTERNATIONAL RIGHTS AND OBLIGATIONS NOW AFFECTING HONG

KONG.

THE PURPOSE OF THIS MEMORANDUM IS TO SEEK MEMBERS' ADVICE ON THE BEST LINE OF ACTION TO BE TAKEN TO SECURE HONG KONG'S CONTINUED PARTICIPATION IN THE GATT AND THE CCC BEYOND 30 JUNE 1997.

CONFIDENTIAL

/PARTICIPAMON

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