CONFIDENTIAL # &

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 have

its former membership re-instated. This issue

is likely to come to a head in about two or

three years' time when 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.

5.

Possible Options for Continued Participation

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;

NBIDENTI

GNTIAL AR

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