CONFIDENTIAL
12. HONG KONG PLAYS AN IMPORTANT AND POSITIVE ROLE IN THE WORLD TRADING SYSTEM. IT IS COMMITTED TO FREE TRADE IN ACCORDANCE WITH THE PRINCIPLES AND PRACTICES OF THE GATT. IT IS IN THE INTERESTS OF THE DEVELOPMENT OF INTERNATIONAL TRADE THAT IT SHOULD BE ABLE TO CONTINUE PLAYING ITS PRESENT ROLE. WE WOULD EXPECT CONTRACTING PARTIES TO WELCOME ARRANGEMENTS THAT ARE INTENDED TO ENSURE THIS, WITHIN THE PROCEDURES LAID DOWN BY THE GATT.
DEFENSIVE POINTS
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IF IT IS SUGGESTED THAT USE OF ARTICLE XXVI (5) (C) IS NOT APPROPRIATE.
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13. THE USE OF ARTICLE XXVI (5) (C) IS APPROPRIATE IN THE CASE OF HONG KONG WHOSE PARTICIPATION IN THE GATT IS DERIVED FROM THE UK'S ACCEPTANCE OF THE AGREEMENT IN 1948 ON BEHALF OF ITSELF AND THE TERRITORIES FOR WHICH IT THEN HAD INTERNATIONAL RESPONS- IBILITY (EXCEPT JAMAICA).
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IF IT SUGGESTED THAT A CONTRACTING PARTY SHOULD BE A
SOVEREIGN STATE.
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14. THIS IS NOT SO. ALTHOUGH ALL CONTRACTING PARTIES ARE CURRENTLY SOVEREIGN STATES THIS WAS NOT ALWAYRS THE CASE. IT
IS CLEAR FROM THE AGREEMENT THAT A CONTRACTING PARTY CAN BE EITHER THE GOVERNMENT OF A SOVEREIGN STATE OR THE GOVERNMENT OF A SEPARATE CUSTOMS TERRITORY.
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IF IT IS SUGGESTED THAT HONG KONG DOES NOT ENJOY AUTONOMY IN EXTERNAL COMMERCIAL RELATIONS.
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15. SINCE THE UK'S ACCEPTANCE OF THE AGREEMENT IN 1948 ON BEHALF OF HK, ITS ROLE HAS REVOLVED CONSIDERABLY. IT IS TO ALL 4NTENTS AND PURPOSES ALREADY OPERATING AS IF IT WERE A SEPARATE CONTRACTING PARTY. ITS AUTONOMY IN EXTERNAL COMMERCIAL RELATIONS HAS BEEN READILY ACCEPTED BY OTHER CONTRACTING PARTIES TO THE GATT. THIS
IS ILLUSTRATED BY THE FACT THAT THE HONG KONG REPRESENTATIVE] Spoker:: INTERVENES FREELY IN THE SESSIONS OF THE GATT CONTRACTING PARTIES, THE HIGHEST AUTHORITY IN THE GATT, AND HE HAS SERVED AS CHAIRMAN OF COMMITTEES AND ON PANELS IN THAT CAPACITY. THE UK DECLARATION WILL BE FORMAL PUBLIC CONFIRMATION OF HONG KONG'S AUTONOMY IN EXTERNAL COMMERCIAL RELATIONS.
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IF IT SHOULD BE SUGGESTED THAT ARTICLE XXVI (5) (C) IS INTENDED
CONFIDENTIAL
FOR