RDIAH J

(43.

BACKGROUND

CONFIDENTIAL

1.

Hong Kong at present participates in the GATT as a separate customs territory represented within the UK delegation

the UK delegation but speaking

separately. It is essential for Hong Kong's continued prosperity

way a

should be found for the territory to continue to enjoy

It its present privileged position in the GATT after 1997.

is also

continued commercial confidence

the in Hong Kong in

should be made for this well before

that

for essential

meantime that

arrangements

1997.

2.

Section VI of Annex I to the Sino-British Joint Declaration provides for the Hong Kong Special Administrative Region after 1997 to be a separate customs territory and to participate in international organisations including,

the specifically,

relevant

GATT.

Annex II to the Joint Declaration provides in paragraph 4 that the Joint Liaison Group shall, during the first half of the period

1984-1997, consider action to be taken by the two Governments to enable the Hong Kong Special Administrative Region to maintain its

economic relations as

and in territory,

particular to ensure maintenance of Hong Kong's participation in the

GATT.

a

customs separate

Redacted under FOI exemption section 27 (1)

Discussion

3.

this with on

and second meetings of the JLG.

the Chinese duly began at the

first

CONFIDENTIAL

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