CONFIDENTIAL #
Assessment
6.
5
Option 1 cannot be exercised until
the change of sovereignty has taken place in
1997. Also it will have to depend on China's
membership in the GATT which as assessed at
this point in time is, at best, uncertain.
7.
Option 2, although thoretically
possible, is a procedure normally used by
independent sovereign states that have had no
previous connection with the GATT. This option
cannot be exercised until China has assumed
international responsibility for Hong Kong.
In any event, in negotiating terms with
Contracting Parties under this option, Hong
Kong would be hostage to those seeking
undertakings which China might find unacceptable,
and disadvantageous to the SAR. Furthermore,
a two-thirds majority of the Contracting Parties
in favour of accession is required; this could
give rise to difficulties.
8.
Option 3 is by far the most desirable
and practicable in the circumstances because it
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