TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 139

CONFIDENTIAL ##

vis-a-vis the GATT as is likely to happen when

Contracting Parties start to review China's

current observer status in the GATT.

The proposed procedure

11.

Accordingly, the Administration

considers that it would be simplest and safest

to adopt Option 3 and as soon as possible.

This will require an early recommendation to

FCO for submission to Ministers for the following

procedure (derived from the discussions with the

GATT Secretariat referred in para. 9) to be

adopted:

(a)

(b)

a declaration by HMG under

Article XXVI 5(c) of the GATT

stating that Hong Kong possesses full

autonomy in the conduct of its

external commercial relations etc.

and should be deemed to be a full

contracting party : (Hong Kong then

achieves de facto contracting party

status);

a statement from Hong Kong to the

GATT saying it wished to become a

de jure contracting party; and

N

機