CONFIDENTIAL

042570

MDLIAN 4790

INCLUDING A RESERVATION, WHICH WERE DESIGNED TO FACILITATE THE PARTICIPATION OF THE UNITED STATES OF AMERICA IN THE AGREEMENT. THE RESERVATION WAS INTENDED TO BE INVOKED BY THE UNITED STATES IF IT BECAME A PARTY TO THE AGREEMENT. THIS RESERVATION ENABLES THE UNITED STATES TO PROTECT ITS DOMESTIC INDUSTRY IN CERTAIN CIRCUMSTANCES AGAINST MATERIALS COVERED BY THE AGREEMENT: IT MUST BE APPLIED ON A NON-DISCRIMINATORY BASIS. THE UNITED STATES BECAME A PARTY TO THE AGREEMENT ON 2 NOVEMBER 1966.

3. THE UNITED KINGDOM RATIFIED THE AGREEMENT ON 11 MARCH 1954 (TEXT AT ANNEX A). THE AGREEMENT ENTERED INTO FORCE ON 21 MAY 1952 IN ACCORDANCE WITH ARTICLE XI. ARTICLE XIII PROVIDES THAT ANY CONTRACTING STATE MAY, AT THE TIME OF THE SIGNATURE OR THE DEPOSIT OF ITS INSTRUMENT OF RATIFICATION OR ACCEPTANCE, OR AT ANY TIME THEREAFTER, DECLARE BY NOTIFICATION THE EXTENSION OF THIS AGREEMENT TO ALL OR ANY OF THE TERRITORIES FOR THE CONDUCT OF WHOSE FOREIGN RELATIONS THAT CONTRACTING STATE IS RESPONSIBLE. THE UNITED KINGDOM MADE SUCH A DECLARATION IN RESPECT OF HONG KONG ON RATIFICATION (TEXT AT ANNEX B).

BENEFITS

4. THE AGREEMENT FACILITATES A FREE CIRCULATION OF EDUCATIONAL, SCIENTIFIC AND CULTURAL MATERIALS. THIS PROMOTES INTERNATIONAL INTELLECTUAL COOPERATION AND PROGRESS. HONG KONG SOCIETY BENEFITS FROM THE EXCHANGE OF ARTISTIC AND SCIENTIFIC MATERIALS AND EDUCATION IN HONG KONG BENEFITS FROM THE FREE FLOW OF EDUCATIONAL MATERIAL.

PROPOSALS

5. THE BRITISH SIDE PROPOSE THAT THE AGREEMENT TOGETHER WITH ITS PROTOCOL AND ITS ANNEXES, SHOULD CONTINUE TO APPLY TO THE HONG KONG SAR AFTER 30 JUNE 1997 IN ACCORDANCE WITH THE JOINT DECLARATION. TO ACHIEVE THIS RESULT, IT WILL BE NECESSARY FOR THE CPG IN SOME WAY TO INDICATE TO ALL PRESENT CONTRACTING STATES, AND ALL GOVERNMENTS WHICH MAY BECOME PARTIES BEFORE 1 JULY 1997, THAT ALL THE INTERNATIONAL RIGHTS AND OBLIGATIONS ARISING FROM THE AGREEMENT AND PROTOCOL, TO THE EXTENT TO WHICH THEY APPLY TO HONG KONG, WILL BE ASSUMED BY THE CPG WITH EFFECT FROM 1 JULY 1997 AND APPLY TO THE HKSAR OF THE PRC. IT WILL FURTHER BE NECESSARY TO ENSURE SO FAR AS POSSIBLE THAT THOSE CONTRACTING PARTIES EITHER AGREE, OR AT LEAST ACQUIESCE. IN THE OPINION OF THE BRITISH SIDE, THE BEST METHOD OF SECURING THIS OBJECTIVE WOULD BE AS DESCRIBED IN PARA 7 OF THE PAPER HANDED TO THE CHINESE SIDE ON 15 MARCH 1989.''

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