HK 2ACZ

CONFIDENTIAL

SINO-BRITISH JOINT LIAISON GROUP (LS): MEETING 22-25 JULY 1985

HONG KONG'S CONTINUING PARTICIPATION IN THE GENERAL AGREEMENT ON

TARIFFS AND TRADE (GATT), THE MULTIFIBRE ARRANGEMENT (MFA) AND THE

CUSTOMS COOPERATION COUNCIL (CCC)

1. The purpose of this paper i s to explain the arrangements which the British side believe would secure the best possible basis for

Hong Kong's continuing participation in:

(i)

the GATT;

(ii) the MFA; and

(iii) the CCC

up to and after 1997.

1/KK 0+0/24

RECET

23 JUL 1985

10

The British side suggest that these inter-related

considered together.

* faken

matters

be

HONG KONG AND THE GATT

through which it enjoys

2. Hong Kong's participation in the GATT,

most favoured

favoured nation rights of access for its goods has been a key

element in its success as an exporter. During the Sino-British

future of Hong Kong, the British and Chinese sides

agreed that arrangements would

arrangements would need to be made to ensure that Hong

Kong could continue to be effectively represented

and its views

effectively expressed within the GATT.

talks

3.

the on

a

on

As

reflection of this, Section

Annex VI of

I to the

Sino-British Joint Declaration

the question of Hong Kong makes

provision for the future Hong Kong Special

Special Administrative Region

(SAR) to be a separate customs territory. It also provides for the

SAR to participate in relevant international organisations and international trade agreements (including preferential trade

arrangements), such as the GATT and arrangements regarding

international trade in textiles.

4. Paragraph 4 of Annex II to the Joint Declaration states that

CONFIDENTIAL

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