back-sliding in the future.

The declaration could be confirmed

by China in 1997 - but this is not essential. It could be presented to the Chinese as a re-affirmation of Section VI of Annex 1 to the Joint Declaration.

Hong Kong's participation in the CCC

16

Hong Kong currently attends some of the technical meetings of the CCC as part of the UK delegation. The UK is a member of the CCC and so is China.

17

Membership of the CCC is open to any separate customs territory which:

contracting party having

responsibility for the normal conduct of its

(a)

is proposed by a

diplomatic relations;

(b)

is autonomous in the conduct of its external commercial relations; and

(c) is approved for admission as

member by the Council.

a separate

Hong Kong's position in CCC is analogous to that in the GATT. However as far as the CCC is concerned separate membership for Hong Kong would have to be approved by the Council even if HMG were to make a declaration to the effect that Hong Kong

full possessed

autonomy in the conduct of its external commercial relations.

18

As China is already a member of the CCC and the Council's discussions are at present purely technical in nature, Hong Kong's interests in it

it are less critical than in the GATT. Nevertheless, the same basic considerations which apply to the GATT apply also to the CCC. Thus, HMG should be asked at the same time as it makes the

under declaration Article XXVI 5(c) of the GATT to make a parallel declaration under the convention establishing the CCC and to sponsor Hong Kong's membership therein.

Financial and administrative implications

19

If Hong

Contribution to the GATT budget is based on the individual contracting party's share of world trade. Kong were already to have become a separate contracting party to the GATT, its contribution for 1985 would have been 800,000 Swiss Francs (SWF), plus 42,000 SWF

plus 42,000 SWF towards working capital fund (about dollars HK2,495,267 at the exchange rate obtaining on 31 May 1985).

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