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THE PRC. IN THE SINO-BRITISH JOINT DECLARATION, AND IN ITS OWN
BASIC LAW FOR HONG KONG, CHINA HAS ENUNCIATED A POLICY OF "ONE
COUNTRY, TWO SYSTEMS" THAT IT WILL FOLLOW WITH RESPECT TO HONG KONG. HOWEVER, IF LEFT UNCHANGED, OUR OWN LAW MIGHT FORCE US
TO OPERATE ON A "ONE COUNTRY, ONE SYSTEM" BASIS, TO THE
DISADVANTAGE OF HONG KONG AFTER 1997.
THE EXTENSIVE COMMERCIAL, CULTURAL, TRANSPORTATION,
COMMUNICATION AND OTHER RELATIONS THAT U.S. CITIZENS AND
COMPANIES NOW MAINTAIN WITH HONG KONG AND ITS PEOPLE ARE
POSSIBLE BECAUSE, FOR MOST PURPOSES, HONG KONG IS TREATED UNDER
U.S. LAW AS A PART OF THE UNITED KINGDOM. IN A FEW IMPORTANT
AREAS, NOTABLY THE RIGHTS AND OBLIGATIONS ACCORDED UNDER THE
GENERAL AGREEMENT ON TARIFFS AND TRADE AND RELATED AGREEMENTS,
HONG KONG PARTICIPATES AND RECEIVES FAVORABLE TREATMENT (E.G.,
FINALLY, MOST FAVORED NATION TARIFF RATES) IN ITS OWN RIGHT.
FOR A FEW PURPOSES NOTABLY IMMIGRATION AND TEXTILE QUOTAS
U.S. LAW NOW TREATS HONG KONG AS A SEPARATE TERRITORY.
THE RESULT OF THIS TREATMENT IS THAT HONG KONG RECEIVES
MOST OF THE ADVANTAGES UNDER U.S. LAW OF BEING PART OF THE
UNITED KINGDOM, WITH A FEW ADVANTAGEOUS MODIFICATIONS THAT GIVE
EFFECT TO THE TERRITORY'S ECONOMIC AUTONOMY AND CULTURAL DISTINCTIVENESS FROM THE U.K. MOST IMPORTANT, HONG KONG IS
SUBJECT TO NONE OF THE U.S. DOMESTIC LEGAL CONSTRAINTS THAT
LIMIT OUR COMMERCIAL, CULTURAL AND OTHER RELATIONS WITH THE PRC. STATUTES NOW IN FORCE SET FORTH MANDATORY RULES THAT