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we
If Hong Kong exercises the promised high degree of autonomy, believe it should not be automatically subject to disabilities that might be imposed on the PRC. That is, we think our laws should permit us to treat China as one country that contains two distinct systems. Thank you.
SEN. MCCONNELL: So the answer is yes. (Laughter.)
MS. SELBY: It would be useful. It is not strictly speaking
necessary to be broad, but it would be useful.
SEN. MCCONNELL: I wasn't really trying to be a smart aleck, but I
obviously, then, you do agree that some law is helpful.
MS. SELBY: It would be useful, yes. And in some cases, necessary.
SEN. MCCONNELL: All the rest of it is something you'd like to negotiate.
Secretary Solomon, in your testimony you stated that Hong Kong will continue to participate in agreements such as GATT and APEC open to non-states. Has the PRC commented on this prospect, do you know? Are you confident of the arrangement? What do you view as the economic and political value of being able to participate independently in GATT?
MR. SOLOMON: Well, Hong Kong is already a member of the GATT, and PRC has supported that. Last November, with South Korea in the lead, an arrangement was worked out where -- whereby the PRC, Hong Kong, and Taiwan all entered APEC at about the same -- at the same time. So there again, the precedent is that Beijing has supported the idea of Hong Kong as a distinct economic entity participating in international organizations. And I believe that's also part of the 1984 declaration and the basic law. We can get the specific language for you, but I believe it's clear that the PRC is committed to that kind of position.
SEN. MCCONNELL: Well, one of you suggested that current law -- and you referred to Jackson-Vanik
could capture Hong Kong in restrictions imposed on the PRC if we don't change our domestic law, which I think you've referred to.
Wouldn't this give China incentive to deny dual membership in GATT and other agreements? After all, the PRC would seem wise to use Hong Kong as a shield. Does it have that potential?
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MS. SELEY: The I think as it stands, Hong Kong's entitlement under GATT is established because they are already a party.
I'm not aware that there has been a
or that the GATT has
--
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case of
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actually confronted the issue of a party being forced as an autonomous customs territory, being forced to respond. If we were forced to
if we were under withdrawing MFN from China and not give it to Hong Kong, we would in the first instance, I think, be violating our own GATT obligations, which would remain unchanged.
thus could