TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 8

PP PEKING

GRS 3000

CONFIDENTIAL

FM FCO 301000Z MAY 85

CONFIDENTIAL

TO PRIORITY HONG KONG

TELEGRAM NUMBER 753 OF 30 MAY

83

TUI

21932

1

HKK040/24

j

INFO PRIORITY PEKING, UKMIS GENEVA, UKREP BRUSSELS,

(FOR JONES), WASHINGTON

BRUSSEL

82) MIPT:

HONG KONG'S FUTURE POSITION IN THE GATT AND CCC: DRAFT

EXCO MEMORANDUM

1.

FOLLOWING IS REVISED TEXT OF THE EXCO MEMORANDUM.

BEGINS

INTRODUCTION

See 84

DURING THE SINO-BRITISH TALKS ON THE FUTURE OF HONG KONG, THE

BRITISH SIDE EXPLAINED TO THE CHINESE SIDE THE FUNDAMENTAL

IMPORTANCE OF THE GATT TO HONG KONG'S ECONOMIC PROSPERITY AND, IN

PARTICULAR, THE IMPORTANCE OF THE MOST-FAVOURED-NATION RIGHTS OF

ACCESS FOR ITS GOODS. THE CHINESE SIDE AGREED THAT ARRANGEMENTS

WOULD NEED TO BE MADE TO ENSURE THAT HONG KONG COULD CONTINUE TO

BE EFFECTIVELY REPRESENTED AND ITS VIEWS EFFECTIVELY EXPRESSED

WITHIN THE GATT.

2.

AS A REFLECTION OF THIS, SECTION VI OF ANNEX 1 TO THE

SINO-BRITISH JOINT DECLARATION ON THE QUESTION OF HONG KONG MAKES

PROVISION FOR THE SAR TO BE A SEPARATE CUSTOMS TERRITORY. IT

ALSO PROVIDES FOR THE SAR TO PARTICIPATE IN RELEVANT

INTERNATIONAL ORGANISATIONS AND INTERNATIONAL TRADE AGREEMENTS

(INCLUDING PREFERENTIAL TRADE ARRANGEMENTS), SUCH AS THE GATT AND

ARRANGEMENTS REGARDING INTERNATIONAL TRADE IN TEXTILES.

3. PARAGRAPH 4 OF ANNEX II TO THE JOINT DECLARATION STATES THAT

MATTERS FOR EARLY CONSIDERATION BY THE JLG SHALL INCLUDE ACTION

TO BE TAKEN BY THE TWO GOVERNMENTS

(A) TO ENABLE THE HONG KONG SAR TO MAINTAIN ITS ECONOMIC

RELATIONS AS A SEPARATE CUSTOMS TERRITORY, AND IN PARTICULAR TO

ENSURE THE MAINTENANCE OF HONG KONG'S PARTICIPATION IN THE GATT,

1

CONFIDENTIAL