CONFIDENTIAL
"The Hong Kong Special Administrative Region shall
be a separate customs territory. It may participate
in relevant international organisations and international trade agreements (including preferential trade arrangements), such as the General Agreement on Tariffs and Trade and arrangements regarding international trade in textiles.".
Annex II to the Declaration establishes a Sino British Joint
Liaison Group (JLG) whose functions are to consult on the implementation of the Declaration. One specific matter committed
to the JLG is:-
"action to be taken by the two Governments to enable
the Hong Kong Special Administrative Region to maintain
its economic relations as a separate customs territory,
and in particular to ensure the maintenance of Hong Kong's participation in the General Agreement on Tariffs and Trade, the Multifibre Agreement and other international agreements" (para 4 (a) of Annex II).
The Policy of developing a separate status for Hong Kong during
the interim period
3. It is the policy of HMG during the interim period before 1997 to do what is possible to establish for Hong Kong, in those areas of activity in which the Joint Declaration recognises it will have an autonomous or distinct position or role, a status which is separate from that of the UK so as to provide the basis for a
continuance of such separate status when Hong Kong reverts to China in 1997. In pursuance of this policy we are for example intending to separate Hong Kong from the ambit of United Kingdom Air Service Agreements and to negotiate distinct Air Service Agreements applicable only to services by Hong Kong airlines and airlines of other states between Hong Kong and those states.
A particular and immediate aspect of this policy is to provide for Hong Kong a separate status in the GATT.
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CONFIDENTIAL
/The GATT