PARTICIPATION IN THE GATT
HONG KONG'S PRESENT STATUS
:
4.
HONG KONG DERIVES ITS GATT RIGHTS AND OBLIGATIONS FROM ITS
POSITION AS A DEPENDENT TERRITORY OF THE UNITED KINGDOM WHICH
ACCEPTED THE GATT ALSO IN RESPECT OF TERRITORIES FOR WHICH IT
HAS INTERNATIONAL RESPONSIBILITY. HONG KONG'S CURRENT (NEXT TWO
WORDS UNDERLINED) DE FACTO STATUS IN THE GATT WILL THEREFORE CEASE
TO EXIST AFTER 30 JUNE 1997 FOLLOWING THE CHANGE OF SOVEREIGNTY
UNLESS SOME MEANS COULD BE FOUND TO TRANSMIT SUCH STATUS TO THE
SAR.
5. CHINA IS NOT CURRENTLY A MEMBER OF THE GATT BUT IS ATTENDING
ITS MEETINGS AS AN OBSERVER. IT IS UNDERSTOOD THAT CHINA IS
ACTIVELY PURSUING THE QUESTION OF ITS GATT MEMBERSHIP AND HAS
INDICATED ON A NUMBER OF OCCASIONS THAT, AS A FOUNDER MEMBER,
IT WOULD BE SEEKING TO RESUME ITS MEMBERSHIP. IRRESPECTIVE OF HOW
CHINA WOULD EVENTUALLY PROCEED TO SEEK ACCESSION TO THE GATT, IT
IS BELIEVED TO BE THE OPINION OF SOME DEVELOPED COUNTRIES THAT
CHINA WOULD HAVE TO PAY' IN THE SENSE OF NEGOTIATING ENTRY AND
ACCEPTING THE CONDITIONS APPROPRIATE TO ENTRY. NEGOTIATIONS OVER
CHINESE ACCESSION WOULD LIKELY TO BE LONG DRAWN OUT AND COULD TAKE
ANYTHING UP TO 8 YEARS. HOWEVER, CHINA'S POSITION IN GATT IS
LIKELY TO COME TO A HEAD IN ABOUT TWO OR THREE YEARS' TIME WHEN
THE CONTRACTING PARTIES WOULD PROBABLY WISH TO REVIEW CHINA'S
OBSERVER STATUS HAVING REGARD TO THEIR GENERALLY HELD VIEW THAT
THERE SHOULD BE A TIME LIMIT ON SUCH STATUS.
POSSIBLE OPTIONS FOR CONTINUED PARTICIPATION
6. THERE ARE, IN ESSENCE, THREE BASIC OPTIONS FOR HONG KONG'S
CONTINUED PARTICIPATION IN THE GATT. THESE ARE:
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
OPTION 3
HONG KONG TO SEEK TO ACCEDE TO THE GATT ON TERMS TO
BE AGREED WITH THE CONTRACTING PARTIES IN ACCORDANCE
WITH GATT ARTICLE XXXI:
PRIOR TO JUNE 1997, HMG DECLARES IN ACCORDANCE WITH
GATT ARTICLE XXVI 5(C) THAT HONG KONG POSSESSES FULL
AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL
RELATIONS WHEREUPON HONG KONG WILL BE DEEMED TO BE
A CONTRACTING PARTY.
CONFIDENTIAL
LASSESSMENT