CONFIDENTIAL
GRS 220
CONFIDENTIAL
FM HONG KONG 100954Z JUN 85
TO IMMEDIATE F C O
TELEGRAM NUMBER 1123 OF 10 JUNE
HKK
040
/24
NEGIE,AN
1Uas
D. PR
FILER
INDEX
PA
LA
INFO IMMEDIATE PEKING, UKMIS GENEVA (COPY FOR CARTLAND), -UKRER BRUSSELS, BRUSSELS (FOR JONES), WASHINGTON.
INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON.
UKMIS GENEVA TELNO 223 AND YOUR TELNO 796 : GATT AND HONG KONG.
WE FEAR WE REMAIN UNCONVINCED. WE THINK WE SHOULD TAKE FULL ADVANTAGE OF THE WORDING OF ARTICLE XXVI (5)(C) WHICH CLEARLY INDICATES THAT THE OPERATIVE ACT WHICH WILL ENTITLE HONG KONG TO BE
DEEMED TO BE A CONTRACTING PARTY WILL BE THE UK'S DECLARATION. MOREOVER, THE WORD UPON INDICATES THE TIME WHEN HONG KONG IS TO BE SO DEEMED, 1.2. THE MOMENT WHEN THE DECLARATION IS MADE.
,,
2. THE DECLARATION BY HONG KONG DOES NOT APPEAR TO BE PART OF THE PROCEDURE ESTABLISHED BY ARTICLE XXVI(5)(C), AND IN OUR VIEW IT HAS NO LEGAL EFFECT. IT IS MERELY ADDED TO REASSURE OTHER
CONTRACTING PARTIES OF HONG KONG'S VIEWS.
3. WE APPRECIATE THAT UKMIS GENEVA AND THE GATT SECRETARIAT'S VIEWS ARE BASED TO SOME EXTENT ON PRECEDENTS. HOWEVER, ALL SUCH PREVIOUS CASES CAN BE DISTINGUISHED, BECAUSE THEY INVOLVED DEPENDENCIES PROCEEDING TO INDEPENDENCE. IN SUCH CASES THE PROVISIONS OR ARTICLE XXVI(5)(C) WERE PERHAPS NOT ENTIRELY APT, AND IT MAY BE THAT IN SUCH CASES A PROCEDURE WAS ADOPTED WHICH, WHILE IT DID NOT STRICTLY FOLLOW THOSE PROVISIONS, WAS MORE IN KEEPING WITH THE STATUS OF THE NEWLY INDEPENDENT STATE. HOWEVER SUCH CONSIDERATIONS DO NOT APPLY IN OUR CASE. MOREOVER WE DO NOT HAVE TO TAKE LIBERTIES WITH THE
TEXT IN THE WAY. THE UK DECLARATION RECOMMENDED IN HONG KONG TELNO. 1094 IS STRICTLY IN ACCORDANCE WITH THE TEXT, AND OUR FUNDAMENTAL OBJECTIVE MUST BE TO PRE-EMPT THE RAISING OF QUERIES, OR ANY
CHALLENGE ON THE GROUNDS THAT WE ARE NOT STRICTLY FOLLOWING THE
PROCEDURE PRESCRIBED BY THE ARTICLE.
4. FOR THESE REASONS WE STILL RECOMMEND THAT THE TEXT OF THE UK DELCARATION SHOULD BE AMENDED ALONG THE LINES SUGGESTED IN OUR
TELNO. 1094.
YOUDE
LIMITED
HKD
FED
ECD(E)
Ps
PS/MR LUCE
MR WILSON
CONFIDENTIAL
COPIES TO
HKGO, LONDON MR FIFOOT. LES ADU MISS WILMSHURST, LEG, ADU
MR PRYOR. ITP DTI
MR HEARD. CUSTOM EXCISE
106