CONFIDENTIAL
*
It is the view of Foreign and Commonwealth Office Ministers that Hong Kong's continued participation in the GATT after 1997 would be facilitated by it being deemed to be a separate contracting party under this provision as soon as possible in the interim period. They therefore wish to make the declaration envisaged in
Article XXVI 5(c).
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6. Hong Kong's separate representative in the organs of the GATT (para 4 above) is a reflection of the considerable freedom it has in practice enjoyed for a number of years in conducting
its external commercial relations. A statement of the position
in 1969 is set out in telno 580 of 29 August 1969. Paras 2 and 3
of that telegram show that, notwithstanding the formal constitution
position:
(a)
HMG had recognised that in matters not affecting
considerations of British International Commercial policy, the Hong Kong Government should determine the course of, and, where practicable, be responsible for
the conduct of Hong Kong's external commercial relations;
/ (b)
* Footnote: It would not necessarily guarantee it, but China
is currently considering seeking membership of the GATT and, if this comes about, it would provide the same kind of umbrella after 1997 as United Kingdom sponsorship at this stage. However, in any event, GATT Secretariat officials, who have been unofficially sounded out, take the view that, if Hong Kong were to have become a contracting party under Article XXVI 5(c), there would be no question of it ceasing to have that status solely by virtue of the change in sovereignty in 1997. They take the view that only if that resulted in a loss of autonomy in the conduct of external commercial relations would there be a question of suspension or termination of contracting party status. Such a position would be inconsistent with China's stated policy in Annex I to the Joint Declaration (para 2 above).
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CONFIDENTIAL