TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 76

(MC 13/393/1)

21 August, 1970.

Kula

81

GATT and Hong KongzT

We have discussed over the last couple of weeks the alleged "opinion" of a PCO Legal Adviser that the cannot properly retaliate against a country in respect of action which that country takes to restrict its imports from Hong Kong. We have both tried to find this alleged "opinion" without success. I, therefore, referred this to our Legal Adviser and asked whether Britain can or cannot retaliate against a third country on Hong Kong's behalf.

2. He has said that the general position in international law is that any wrongful or other action (such as retaliation) taken against Hong Kong ie, in legel terms, taken against the United Kingdom. Thus, mbj et to any exception which might have been created in international agreements only the United Kingdom can retaliate in respect of such action taken against Hong Kong by third countries. Our Legal Adviɛer considers that the relevant provisions of the GATT appear to be Articles XXIV and XXVI. So that he cu confára a view as to whether these Articles affect the general proposition outlined above and can thereby enable Hong Kong to re aliate of her own motion to the exclusion of the exercise of such a right by the United Kingdom, he has asked the following questions:

3.

whether the U.K. has, in accordance with Article XXVI (5)(a) of the GATT, notified the Executive Secretary that Hong Kong was a separate curtoms territory (in which cavO

should like to see the notification); and

(b) whether, going on from there, action has been taken nder Article XXVI (5)(e) of the GATT in respect of Hong Kong so that Hong Kong has, upon sponsorship through a declaration by the United Kingdom, acquired "full autonomy in the cond ct of its external commercial relations", and is thereby deemed to be a contracting party;

(c) whether, in your view, there are other relevant provisions of the GAIT to which my attention should be draw.

I should be glad if you could provide me with the answers.

J. Roodhead, Esq.,

(R. Howforth) Commodities Department

Board of Trade, CRE 1,

Victoria Street, 8.W.1.

01

G. 7. Kinear, Esq., A.K.D.✓

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12. Perceval T.P.D.