For discussion
on 11 June 1985
119
CONFIDENTIAL 01/24
Blue Vol XIV (16)
XCX(85)4976
Copy No
MEMORANDUM FOR EXECUTIVE COUNCIL
HONG KONG'S FUTURE POSITION IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)
AND THE CUSTOMS CO-OPERATION COUNCIL (CCC)
Introduction
on the future of Hong the Chinese side the
During the Sino-British talks Kong, the British side explained to fundamental importance of the
the GATT to Hong Kong's economic prosperity and, in particular, the importance of the most-favoured-nation rights of access for its goods. The Chinese side agreed that arrangements would need to be made to that Hong Kong could continue to be effectively represented and its views effectively expressed within the GATT.
ensure
2
As a reflection of this, section VI of Annex I to the Sino-British Joint Declaration on the question of Hong Kong makes provision for the 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.
3
Paragraph 4 of
Annex II to the Joint Declaration states that matters for early consideration by the Joint Liaison Group (JLG) shall include action to be taken by the two governments
(a) to enable the Hong Kong SAR to maintain its economic relations as a separate customs territory, and in particular to ensure the maintenance of Hong Kong's participation in the GATT, the MFA and other international arrangements;
(b)
to ensure the continued application to the Hong Kong
Kong SAR of international rights and obligations affecting Hong Kong. The purpose
of this memorandum is to seek Members' advice on the best course to be taken to secure Hong Kong's continued participation in the GATT and the CCC beyond 30 June 1997.
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