GRS 420
CONFIDENTIAL
FM WASHINGTON
TO ROUTINE FCO
TELNO 427
Tur
CONFIDENTIAL
OF 2010OOZ FEBRUARY 86
INFO ROUTINE HONG KONG, PEKING, UKMIS GENEVA
62
HMK 040/2
RECEIVED IN REGISTRY
2 1FEB 1986
H
DESK OFFICER
INDEX
56)
YOUR TELNO 2577 HONG KONG AND GATT
1.
HARRIS AND PLUMBLY CALLED ON NEWKIRK AND KLEIN IN THE USTR'S OFFICE TO MAKE THE POINTS IN TELEGRAM UNDER REFERENCE. THEY STRESSED THE SENSITIVITY OF THE ISSUE AND THE NEED TO RESPECT CONFIDENTIALITY PENDING THE OUTCOME AND CURRENT EXCHANGES WITH THE
CHINESE.
2. THEY POINTED OUT THAT THE TERMS OF ARTICLE XXVI (5)(C) HAD BEEN INTENTIONALLY DRAFTED SO AS TO MAKE CLEAR THAT A DEPENDENT TERRITORY CAN EITHER ACT IN ITS OWN RIGHT AS A FULLY CONTRACTING PARTY AND BE REPRESENTED IN THE GATT BY A SEPARATE DELEGATHON (AS BURMA, CEYLON AND SOUTHERN RHODESIA HAD BEEN IN THE 1947 GATT NEGOTIATIONS) OR CONTINUE TO BE REPRESENTED BY THE METROPOLITAN CONTRACTING POWER ACTING ON BEHALF OF THE CUSTOMS TERRITORY. NEWKIRK AND KLEIN DID NOT DISSENT FROM THIS ANALYSIS BUT KLEIN MAINTAINED THAT BECAUSE SOUTHERN RHODESIA HAD ENJOYED SEPARATE CONTRACTING PARTY STATUS DURING THE ORIGINAL 1947 NEGOTIATIONS, THERE WAS NO PRECEDENT FOR A DEPENDENT TERRITORY BEING DEEMED TO BE A CONTRACTING PARTY AFTER THE GATT HAD COME INTO EFFECT. THEY ACCEPTED THAT HONG KONG WOULD FULFILL THE CRITERIA IN ARTICLE XXVI(5)(C) OF POSSESSING FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS BUT ASKED WHAT THE POSITION WOULD BE WITH REGARD TO TARIFFS IF THE UK MADE SUCH A DECLARATION. WHILE IT WAS CLEAR THAT A GOVERNMENT THAT BECAME A CONTRACTING PARTY UNDER THIS ARTICLE WOULD DO SO ON THE TERMS AND CONDITIONS PREVIOUSLY ACCEPTED BY THE METROPOLITAN GOVERNMENT ON BEHALF OF THE TERRITORY, IT WAS NOT ENTIRELY CLEAR WHETHER THE UK HAD EVER SUBMITTED A TARIFF SCHEDULE FOR HONG KONG WHICH WAS BOUND
IN THE GATT.
3. THEY HAD CLEARLY NOT APPRECIATED THE EXTENT TO WHICH THE POSITION OF HONG KONG AFTER 1997 IS ALREADY GOVERNED BY THE TERMS OF THE JOINT DECLARATION AND WE HAVE PROMISED TO SEND THE USTR OFFICE A COPY FOR THEIR BACKGROUND INFORMATION.
CONFIDENTIAL
(4.