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than our principal competitors in the Chinese market in
our attitude to a Chinese application. But we could be
fairly confident of incurring commercial penalties if
we were conspicuously less helpful.
7.
Our principal interest in this issue is political
and relates to Hong Kong, both generally and in
specific connection with the GATT. In general, we
shall be seeking to maintain a harmonious relationship
with China as the best context for the smooth
implementation of the Hong Kong agreement. More
specifically, we have agreed with the Chinese that the
British and Chinese Governments should work together,
after the agreement on Hong Kong's future comes into
force, to enable the Hong Kong special administrative
region of China (as Hong Kong will be after 1997) 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 and other
similar international arrangements. A provision to
this effect is included in the agreement.
It is of the
greatest importance to Hong Kong's future as a trading
entity that this objective should be achieved.
8.
We believe that it would in theory be legally
possible for Hong Kong to continue participating in the
GATT after 1997 (although as a contracting party in her
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