TNAG-1345-FCO40-1775-Future-of-Hong-Kong-Joint-Liaison-Group-1984 — Page 30

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(ii) to discuss matters relating to the smooth transfer of

government in 1997.

(iii) to exchange information and conduct consultations on such

subjects as may be agreed by the two sides.

(d) in the first half of the period up to 1 July 1997 matters for

consideration will include:

(e)

(i) action to be taken by the two Governments to enable the Hong Kong Special Administrative Region to maintain its economic relations as a separate customs territory, and in particular to ensure the maintenance of Hong Kong's participation in the General Agreement on Tariffs and Trade, the Multifibre Arrangement and other international

arrangements; and

(ii) action to be taken by the two Governments to ensure the

continued application of international rights and

obligations affecting Hong Kong.

in the period after 1 July 1997 matters for consideration will

include:

(i) procedures to be adopted for the smooth transition in

1997;

(ii) action to assist the Hong Kong Special Administrative

Region to maintain and develop economic and cultural relations and conclude agreements on these matters with states, regions and relevant international organisations.

BRITISH AIMS

3.

A basic question is that should be our fundamental approach to the Group. So far, because inevitably we had to oppose its formation in the talks, and because fears of its implications in Hong Kong have not entirely been dissipated, we have adopted a defensive posture, designed to limit the field of activity and

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