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A
how best to ensure the maintenance of Hong Kong's participation in
the GATT and in the Customs Cooperation Council (CCC). Hong Kong's participation in the GATT is specifically mentioned in Annex II to the Joint Declaration as one of the matters to be considered by the
JLG and we expect that it will be taken up at an early stage.
4.
At present Hong Kong participates in the GATT by virtue of the UK's status as a Contracting Party. Its continued participation
after 1997 would be facilitated by Hong Kong becoming a separate
Contracting Party under Article XXVI.5(c) of the GATT during the interim period, and the Governor is recommending to EXCO that Hong Kong should take this course. To qualify under Article XXVI.5(c),
it would be necessary for HMG to make a declaration that Hong Kong possesses "full autonomy in the conduct of its external commercial relations and of the other matters provided for in" the GATT, whereupon (and upon confirmation by Hong Kong that it wishes separate membership) Hong Kong would be deemed to be a separate
Contracting Party. (A similar position obtains with regard to the Customs Cooperation council where, in addition to other qualifications, it would be necessary to establish that Hong Kong
"is autonomous in the condcut of its external commercial
relations").
B
5.
Hong Kong has for long enjoyed considerable freedom in the conduct of its external commercial relations. This is apparent,
inter alia, from FCO telno 580 of 29 August 1969 to Hong Kong which formally delegated authority to the Hong Kong Government to continue. its practice of negotiating voluntary restraint arrangements in the
field of non-cotton textiles. 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)
Where British international commercial relations were involved,
the Hong Kong Government could nevertheless exercise a similar
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