CONFIDENTIAL
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SEPARATE CUSTOMS TERRITORY ENJOYING THE SAME DEGREE OF AUTONOMY AS AT PRESENT IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS
AND OF OTHER MATTERS PROVIDED FOR IN THE GATT. THE BRITISH SIDE ACCORDINGLY PROPOSE THAT IMMEDIATELY FOLLOWING THE SUBMISSION OF THE HONG KONG STATEMENT TO THE GATT SECRETARIAT, THE GOVERNMENT
OF THE PRC MIGHT WISH TO SUBMIT TO IT AN APPROPRIATE STATEMENT OF
ITS OWN SO THAT THESE MATTERS WERE ACKNOWLEDGED AND DULY NOTED.
THE GATT SECRETARIAT WOULD NO DOUBT WISH TO TAKE ANY SUCH
STATEMENT INTO ACCOUNT WHEN NOTIFYING CONTRACTING PARTIES TO THE
GATT ABOUT HONG KONG'S CHANGE OF STATUS WITHIN THE GATT.
APPENDIX 1 TO THIS PAPER CONTAINS THE BRITISH SIDE'S
PROPOSALS FOR THE THREE TYPES OF DECLARATION WHICH, UNDER THE ARTICLE XXVI (5)(C) PROCEDURE COULD BE SUBMITTED TO THE
DIRECTOR-GENERAL OF THE GATT.
11.
HONG KONG AND THE MFA
12. THE MFA IS A NEGOTIATED DEROGATION FROM THE NORMAL GATT
RULES MODIFYING THE FREE TRADE PRINCIPLES OF THE GATT IN THE
CONTEXT OF TEXTILES AND CLOTHING. HONG KONG IS ABLE TO DEVELOP
ITS TRADE WITHIN THE MFA AND THE BILATERAL ARRANGEMENTS
NEGOTIATED UNDER THE PROVISIONS.
13. THE UNITED KINGDOM HAS ACCEPTED THE MFA ON HONG KONG' S BEHALF. IF, AS THE BRITISH SIDE PROPOSE HONG KONG WERE TO BECOME
A SEPARATE CONTRACTING PARTY TO THE GATT, IT IS THE UNDERSTANDING
OF THE BRITISH SIDE THAT CONTINUING PARTICIPATION IN THE MFA AND
IN ANY SUCCESSOR REGIME WOULD BE SECURED SIMPLY BY HONG KONG
NOTIFYING THE GATT DIRECTOR-GENERAL OF ITS WISHES IN THIS
RESPECT.
HONG KONG AND THE CCC
14.
HONG KONG'S POSITION IN THE CCC IS ANALAGOUS TO THAT IN
GATT. HONG KONG CURRENTLY ATTENDS SOME OF THE TECHNICAL MEETINGS
OF THE CCC AS PART OF THE UK DELEGATION. HOWEVER, AS HONG KONG
IS AUTONOMOUS IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS
AND IN ACCORDANCE WITH THE JOINT DECLARATION ON THE QUESTION OF
HONG KONG, THE HONG KONG SAR WILL, WHEN ESTABLISHED, CONTINUE TO ENJOY THIS DEGREE OF AUTONOMY, THE BRITISH SIDE ACCORDINGLY
PROPOSES THAT THEY AND THE CHINESE SIDE SHOULD AGREE THAT
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CONFIDENTIAL