HKR 122/1
HKK 122/1.
RECI
ECSTRY
25 APR 1986
iction fear
1
The Joint Declaration of the Chinese and British Governments on the question of Hong Kong, signed in Peking on 19 December 1984, provides that the Hong Kong Special Administrative Region (SAR) of China, which will come into existence on 1 July 1997, will retain the status. of a separate customs territory. It will be able on its own to conclude relevant agreements with states, regions and relevant international organisations, and participate in relevant international organisations and international trade agreements such as the GATT. To give effect to these provisions of the Joint Declaration, the British and Chinese Governments have now agreed that they will make parallel declarations to the Director-General of the GATT.
The British declaration will refer to the declaration made by the UK on 28 June 1948 concerning the application of the GATT to Hong Kong. It will declare that Hong Kong, being a separate customs territory in respect of which the United Kingdom has accepted that agreement, possesses full autonomy in the conduct of its external commercial relations and of the other matters provided for in the Agreement: and that in accordance with Article XXVI (5)(c) of the GATT, and with the wishes of Hong Kong, Hong Kong will with immediate effect be deemed to be a contracting party to the agreement.
The Chinese declaration will recall the provisions in the Joint Declaration according to which the Hong Kong SAR of China will decide its economic and trade policies on its own. It will go on to declare that as from 1 July 1997 the Hong Kong SAR will meet the requirements for a customs territory to be deemed to be a contracting party as prescribed in GATT Article XXVI (5) (c), and therefore may, using the name of "Hong Kong, China", continue to be deemed to be a contracting party to the GATT.
The British and Chinese Governments are confident that this procedure is fully in accordance with the provisions of the GATT. This has been confirmed by informal advice from the GATT Secretariat.
The British Government hope that these declarations will meet with the understanding of the Swedish Government and of all contracting parties. There was widespread international support for the Joint Declaration and the provisions for Hong Kong's future, including the ability of the Hong Kong SAR to decide its own economic and trade policies. We hope that there will be a similar degree of understanding for the joint action now to be undertaken by the British and Chinese Governments to give these provisions practical effect.
Hong Kong plays an important and positive role in the world trading system, and is committed to free trade in accordance with the principles and practices of the GATT. The British Government believe that it is in the interests of the development of international trade that Hong Kong should be able to continue playing its present role, and expect that contracting parties will welcome arrangements that are intended to ensure this, within the procedures laid down by the GATT.
BRITISH EMBASSY
STOCKHOLM
14 April, 1986
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