TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 165

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

9.

iii.

Such a change would have to be discussed with the GATT

Secretariat, and possibly certain of Hong Kong's

trading partners as well.

It will be possible for Hong Kong to become a separate

contracting party to the GATT by means of Article XXVI:

5(c), which reads:

"If any of the Customs territories, in respect of

which a contracting party has accepted this

Agreement, possesses or acquires full autonomy

in the conduct of its external commercial relations

and of the matters provided for in this agreement,

such territory shall, upon sponsorship through a

declaration by the responsible contracting party

establishing the above mentioned fact, be deemed

to be a contracting party."

Whilst this Article has been used mainly to enable former

dependent territories to become separate contracting

parties on attaining independance, there is a precedent

Rhodesia - for such a declaration to be made concerning

a territory which remains politically dependent.

There are difficulties about all the above courses open to

Hong Kong. If course (i) or (ii) is followed after Britain joins

EEC, it will become impossible in practice for Hong Kong's rights

to be exercised vis-a-vis the enlarged community with regard to

matters which are harmonised community practice. It will certainly

be more difficult for the UK to act in defence of Hong Kong's

rights even against non-members of EEC since UK spokesmen in the

GATT will inevitably be circumscribed by the need to keep in step

6.

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