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CONFIDENTIAL
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2.
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 PURPOSE OF OUR PRESENT APPROACH IS TO GIVE
ADVANCE INFORMATION OF OUR INTENTIONS AND TO SEEK UNDERSTANDING
OF WHAT WE PROPOSE. THE PRC EMBASSY WILL BE MAKING A SIMILAR
DEMARCHE.
3.
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: 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 DECLARE THAT IN ACCORDANCE
WITH ARTICLE XXVI(5) (C) OF THE GATT AND IN ACCORDANCE WITH THE
WISHES OF HONG KONG, HONG KONG WILL WITH IMMEDIATE EFFECT BE
DEEMED TO BE A CONTRACTING PARTY TO THE AGREEMENT.
4.
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.
5.
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.
6.
THE BRITISH GOVERNMENT HOPE THAT THESE DECLARATIONS WILL
MEET WITH THE UNDERSTANDING OF ALL CONTRACTING PARTIES. THERE
WAS WIDESPREAD INTERNATIONAL SUPPORT FOR THE JOINT DECLARATION
AND THE PROVISION 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 BY THE BRITISH AND CHINESE
/GOVERNMENTS
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CONFIDENTIAL