TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 194

OO HONG KONG

GRS 626

SECRET

FM FCO 201912Z MAR 84

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 509 OF 20 MARCH

INFO IMMEDIATE PEKING

MIPT

MIPT FUTURE OF HONG KONG:

GATT

SECRET

HKCK oug4

GISTRY 22 MAR 1984

Į PEGISTRY

Action Fahen

cũng keo

1. FOLLOWING IS ADVICE OF DEPARTMENT'S LEGAL COUNSELLOR:-

QUOTE WE CANNOT BE ABSOLUTELY CERTAIN THAT THE OTHER CONTRACTING

PARTIES TO GATT WOULD ACCEPT HONG KONG'S CONTINUED PARTICIPATION

AFTER 1997 IN GATT AS A CONTRACTING PARTY IN ACCORDANCE WITH

ARTICLE XXVI (5)(C). HOWEVER, HONG KONG TELEGRAM NO 574 IS ENCOUR-

AGING, AND THE FOLLOWING PROCEDURE IS SUGGESTED

2. ONCE OUR BILATERAL AGREEMENT WITH CHINA HAD ENTERED INTO

FORCE, THE UK AND CHINA WOULD BE COMMITTED BY ARTICLE 4 (AS AT

PRESENT DRAFTED) TO ENDEAVOUR TO SECURE THE RETENTION BY HONG KONG

(CHINA) OF THE BENEFITS EXISTING IMMEDIATELY PRIOR TO 1 JULY 1997

IN RELATION TO THE GATT. PURSUANT TO THAT OBLIGATION THE TWO

GOVERNMENTS WOULD EACH MAKE A DECLARATION TO THE DIRECTOR GENERAL

OF GATT ON THE FOLLOWING LINES:-

(1) THE UNITED KINGDOM WOULD MAKE A DECLARATION IN ACCORDANCE

WITH ARTICLE XXVI(5)(C) TO THE EFFECT THAT HONG KONG WAS

A CUSTOMS TERRITORY, IN RESPECT OF WHICH THE UK HAD ACCEPTED

THE GATT, AND THAT IT POSSESSED FULL AUTONOMY IN THE CONDUCT

OF ITS EXTERNAL COMMERCIAL RELATIONS AND OF THE OTHER MATTERS

PROVIDED FOR IN THAT AGREEMENT.

(II) CHINA WOULD, AT OR ABOUT THE SAME TIME, DEPOSIT A SIMILAR

DECLARATION WITH THE DIRECTOR GENERAL ON THE FOLLOWING LINES:

QUOTE HONG KONG WILL BECOME A SPECIAL ADMINISTRATIVE REGION

OF THE PEOPLE'S REPUBLIC OF CHINA ON 1 JULY 1997. AS SUCH

IT WILL CONTINUE TO BE A CUSTOMS TERRITORY WHICH POSSESSES

FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL

RELATIONS AND OF THE OTHER MATTERS PROVIDED FOR IN THE GATT.

ACCORDINGLY IT WILL AFTER THAT DATE RETAIN THE STATUS OF A

1

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