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to be deemed to be a contracting party as prescribed in

GATT Article XXVI (5)(c), and therefore may, using the name

'Hong Kong, China', continue to be deemed to be a contracting

party to the GATT.

3.

By these declarations the British and Chinese

Governments have taken the necessary concrete steps envisaged

in paragraph 4 (A) of Annex II to the Joint Declaration to

secure the Hong Kong Special Administrative Region's rights

and obligations under the GATT and the MFA in continuation

of Hong Kong's current status.

4.

As Hong Kong has for some years been playing an

autonomous role in the GATT and the MFA from within the

British delegation there will be little variation of substance

in our future role on being deemed to be contracting party

to the GATT. One change is that Hong Kong representatives

will now speak in Hong Kong's name, rather than as 'the

United Kingdom speaking for Hong Kong'. With this new status,

we shall, of course, continue to play our full part in support

of the basic principles and purposes of the GATT and in

defence of Hong Kong's rights thereunder.

The other difference

will be that we shall have to pay our share of the GATT

budget, which has hitherto been part of the UK's contribution

and borne out of UK funds. Funds for this purpose for the

current year have already been voted by the Finance Committee

of this Council.

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