JA4AXL

(20)

CONFIDENTIAL

MR CLARK'S MEETING WITH MR KELLEHER, CANADIAN MINISTER

FOR EXTERNAL TRADE, PARIS, 17 APRIL

Background

1.

an

autonomous

At present Hong Kong plays what is in effect role under the GATT, but formally speaking from within the British delegation. Hong Kong is not a contracting party in its own right. China at present has indicated its intention to rejoin the GATT, but has not so far formally applied. This will be a difficult issue.

2.

A major objective in our negotiations with China on the future of Hong Kong was to ensure that after 1 July 1997, when Hong Kong will become a Special Administrative region (SAR) of the PRC, its participation and autonomy in the GATT and other similar trading arrangements should be maintained. The Joint Declaration on Hong Kong, signed on 19 December 1984, provides that the Hong Kong SAR will retain the status of a separate customs territory and, using the name of "Hong Kong, China" may on its own conclude relevant

agreements with States, regions and relevant international organisations. It will decide its economic and trade policies on its own, and may participate in relevant international organisations

and international trade agreements such as the GATT.

The

Sino-British Joint. Liaison Group, established under the terms of the Joint Declaration, took as an issue for priority consideration "action

to enable the Hong Kong SAR to maintain its economic relations as a separate customs territory and in particular ensure the maintenance of Hong Kong's participation in the GATT, and other international arrangements".

to

MF A

Redacted under FOI exemption sections 27 (1)(a), (c), (d)

CONFIDENTIAL

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