TNAG-1242-FCO40-1555-Future-of-Hong-Kong-1983 — Page 124

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FM FCO 2613002 JUL 83

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 697 OF 26 JULY

AND TO PEKING.

7516

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Mkroach

MIPT: FUTURE OF HONG KONG: PAPER ON ECONOMIC SYSTEM

내 M CM418

TEXT OF LEGAL ADVICE IS AS FOLLOWS:

I. ONCE SOVEREIGNTY OVER THE WHOLE OF HONG KONG VESTS IN THE

CHINESE, THEY ARE INTERNATIONALLY RESPONSIBLE FOR THE TERRITORY.

IT WOULD BE POSSIBLE IN LAW FOR CHINA TO DELEGATE TO THE UK

RESPONSIBILITY FOR THE CONDUCT OF HONG KONG'S EXTERNAL RELATIONS

EITHER IN WHOLE OR IN PART. A USEFUL PRECEDENT FOR THIS VIEW LIE

IN THE ALLIED DELEGATION OF AUTHORITY TO THE FRG TO REPRESENT THE

INTERESTS OF BERLIN (WEST).

2. HOWEVER, SUCH A DELEGATION DOES NOT MEAN THAT THE CONTINUITY

OF HONG KONG'S PARTICIPATION IN OR ASSOCIATION WITH ORGANISATIONS

SUCH AS GATT OR EC WOULD REMAIN UNBROKEN IN THE EVENT OF A

TRANSFER OF SOVEREIGNTY. WE MIGHT OR MIGHT NOT BE ABLE TO

PERSUADE THEM TO ACCEPT THAT THE UK, AS A RESULT OF SUCH

DELEGATION, STILL HAD 'INTERNATIONAL' RESPONSIBILITY SEMI COLON

IE ARTICLE XXVI.5(A) OF GATT STILL KEPT HONG KONG WITHIN GATT.

ALTERNATIVELY WE COULD TRY TO APPLY ARTICLE XXVI.5(C) OF GATT WHICH

CONCERNS 'A CUSTOMS TERRITORY IN RESPECT OF WHICH A CONTRACTING

PARTY HAS ACCEPTED THIS AGREEMENT' (ARGUABLY TRUE OF HONG KONG

WHICH POSSESSES FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL

COMMERCIAL RELATIONS AND OTHER MATTERS PROVIDED FOR IN THE

AGREEMENT) SEMI COLON SUCH A TERRITORY CAN BE DEEMED TO BE A

SEPARATE CONTRACTING PARTY. THIS WAS USED FOR SOUTHERN RHODESIA

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