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(b) it would require a two thirds majority of GATT Contracting
Parties. Negotiations could take time and the uncertainty
generated would seriously undermine confidence in Hong Kong's
future economic prospects.
Why three decalarations under GATT Article XXVI (5)(c)? (Defensive)
8. Our paper explains that the Contracting Parties to the GATT have established standard procedures for use where recourse is made to
GATT Article XXVI (5)(c) ie:
(a)
sponsoring party notifies GATT formally that the territory in question possesses full autonomy in the conduct of its external
commercial relations;
(b) that territory can then inform the GATT that it wishes to be
deemed a Contracting Party to the Agreement.
In addition, we have suggested that:
(c)
PRC might wish to make its own statement to the GATT, to remind the GATT secretariat and GATT Contracting Parties that:
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Hong Kong to become a SAR of the PRC as from 1 July 1997;
Sino-British Joint Declaration on the question of Hong Kong provides, inter alia, for SAR to enjoy same degree of autonomy as at present in the conduct of its external
commercial relations and of other matters provided for in
the GATT;
These arrangements will not alter the status of the
territory within GATT.
We believe that formal association of PRC with our proposed
procedure under GATT Article XXVI (5)(c)
would be valuable reaffirmation of Sections VI and XI of Annex I
to Joint Declaration. Would also show that British and Chinese
sides further developing their cooperative relationship on the question of Hong Kong with a view to effective implementation of
the Joint Declaration.
What are "other matters provided for" in the GATT? (Defensive) 9. These are the restrictions or permitted actions which operate
internally in respect of imports or exports, eg:
(a)
requirement for national treatment on internal taxation or regulation, (ie imported goods and home-produced goods to be treated equally for taxation/control purposes);
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