SUPPORT.
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2. CONCERNED THAT ''JAPAN WOULD LIKE TO CONTINUE TO EXAMINE THE
STATUS OF HONG KONG IN THE GATT, INCLUDING LEGAL ASPECTS, AFTER
JULY 1997 WHEN IT BECOMES A SPECIAL ADMINISTRATIVE REGION OF
CHINA.
3. THE JAPANESE RESERVATION, IF IT BECAME PUBLIC KNOWLEDGE, COULD
HAVE THE MOST UNFORTUNATE CONSEQUENCES BOTH FOR HONG KONG'S CURRENT
STABILITY AND CONTINUING FUTURE PROSPERITY. IF JAPAN WITH ITS VAST INVESTMENTS AND STAKE IN HONG KONG, IN BOTH THE INDUSTRIAL AND
SERVICE SECTORS, HELD SUCH RESERVATIONS ABOUT THE VIABILITY OF
THE GATT ARRANGEMENT BEYOND 1997, OTHER HONG KONG TRADERS WOULD
ASSUME (PROBABLY RIGHTLY) THAT OTHER COUNTRIES HARBOURED SIMILAR
DOUBTS, AND THE WHOLE CAREFULLY CONSTRUCTED EDIFICE OF INTERNATIONAL
SUPPORT FOR HONG KONG'S CONTINUING IN ITS PRESENT TRADING STATUS
COULD CRUMBLE, POSSIBLY EVEN BEFORE 1997.
4. THE SINGLE MOST IMPORTANT FACTOR AFFECTING CONFIDENCE IN HONG
KONG'S FUTURE IS THAT EFFECTIVE ARRANGEMENTS SHOULD BE MADE FOR THE
TERRITORY TO CONTINUE TO PARTICIPATE FULLY AND FREELY IN THE
COMMERCE OF THE FREE WORLD, AND IN ITS TRADING INSTITUTIONS, OF
WHICH THE MOST IMPORTANT IS THE GATT. THIS PRINCIPLE WAS ENSHRINED
IN THE JOINT DECLARATION, WHICH JAPAN WELCOMED.
5. BEFORE EMBARKING ON THE ARTICLE XXVI (5) (C) ROUTE TO SECURE THE
RETENTION OF HONG KONG'S PRESENT GATT STATUS BY THE HONG KONG SAR
AFTER 1997, THE MATTER WAS CAREFULLY STUDIED BY LEGAL EXPERTS IN LONDON AND IN CONJUNCTION WITH THE BATT LEGAL ADVISER, MR LINDEN. ALL THESE AUTHORITIES ARE OF THE VIEW THAT THERE WOULD BE NO QUESTIO
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OF HONG KONG'S CONTRACTING PARTY STATUS, SECURED BY THE ARTICLE XXVI(5) (C) ROUTE, CEASING SOLELY BY VIRTUE OF THE CHANGE OF
SOVEREIGNTY IN 1997. ONLY IF THE HONG KONG SAR'S AUTONOMY IN THE
CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS WAS TERMINATED COULD
THERE BE ANY QUESTION OF A SUSPENSION OR TERMINATION OF ITS
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