CONFIDENTIAL #S

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autonomy in the conduct of its external

commercial relations was terminated would there

be any question of a suspension or termination

of CP status. This had, in fact, occurred with

Southern Rhodesia but even in that case the

question of whether Southern Rhodesia's CP status

had really been suspended was at best unclear and

the GATT maintained the name of Southern Rhodesia

in its documentation and continued to allocate

papers which were not sent out but were held in

store in the GATT pending some resolution of the

situation.

Timing

10.

Early resolution of Hong Kong's

post-1997 status in the GATT will reassure both

the community at large in Hong Kong and its

trading partners that the basis for Hong Kong's

flourishing free market economy will be able to

Furthermore, having regard to

continue.

paragraph 4 of Annex II to the Joint

Declaration this important issue might well be

addressed at the first or second meeting of the

JLG.

Moreover, it would be in Hong Kong's

interest to secure what it desires as soon as

possible, hopefully well before too much

attention is drawn to China's intentions

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