TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 96

COMMERCIAL RELATIONS, OUR SEPARATE MEMBERSHIP WOULD STILL NEED TO

BE APPROVED BY THE COUNCIL. FURTHERMORE, AS CHINA IS ALREADY A

MEMBER OF CCC AND-THIS COUNCIL IS, AT PRESENT, ENTIRELY TECHNICAL

IN ITS DISCUSSIONS, HONG KONG'S INTERESTS. HERE ARE LESS CRITICAL

THAN IN GATT. THESE POINTS NOTWITHSTANDING, IT IS FELT THAT THE

SAME CONSIDERATIONS AS REGARDS GATT APPLY TO CCC, AND THAT HMG

SHOULD BE ASKED TO MAKE A PARALLEL DECLARATION UNDER THE

CONVENTION ESTABLISHING THE CCC AND SPONSOR HONG KONG'S MEMBERSHIP

THEREIN AT THE SAME TIME IT MAKES THE DECLARATION UNDER ARTICLE

XXVI 5(C) OF THE GATT. THE SAME PROCEDURAL STEPS AS FOR GATT

(PARAGRAPH 15) WOULD ALSO SEEM APPROPRIATE FOR CCC.

FINANCIAL AND ADMINISTRATIVE IMPLICATIONS

19. CONTRIBUTION TO THE GATT BUDGET IS BASED ON THE INDIVIDUAL

CONTRACTING PARTY'S SHARE OF WORLD TRADE. IF HONG KONG WERE TO

BECOME A SEPARATE CONTRACTING PARTY TO THE GATT, THE CONTRIBUTION

FOR 1985 WOULD HAVE BEEN SWISS FRANCS 300,000, PLUS SWISS FRANCS 42,000 TOWARDS WORKING CAPITAL FUND (ABOUT HK DOLLARS 2,483,900 AT THE EXCHANGE RATE OBTAINING ON 29 APRIL 1985).

20. HONG KONG'S CONTRIBUTION TO THE CCC WOULD LIKELY BE THE MINIMUM

PAYABLE BY EACH CONTRACTING PARTY, BEING 0.2 PER CENT OF THE CCC'S

ANNUAL BUDGET. THIS CAME TO BELGIAN FRANCS 544,580 IN 1983/84 (ABOUT HK DOLLARS 66,439 AT THE EXCHANGE RATE OBTAINING ON 29 APRIL 1985).

21. IF HONG KONG WERE TO BECOME A UNDERLINE NEXT TWO WORDS DE JURE

CONTRACTING PARTY TO THE GATT, IT MIGHT REQUIRE A SEPARATE MISSION

IN GENEVA. WHILE THIS WOULD NOT INVOLVE ANY ADDITIONAL STAFFING

RESOURCES, DIPLOMATIC PRIVILEGES FOR THE STAFF CONCERNED MAY NEED TO BE EXPLORED SEPARATELY WITH THE SWISS AUTHORITIES. OTHER THAN

GENEVA, NO SIGNIFICANT CHANGES ARE ENVISAGED IN THE FORESEEABLE

FUTURE IN THE EXISTING ARRANGEMENTS FOR REPRESENTING HONG KONG'S

COMMERCIAL INTERESTS IN THIR COUNTRIES, EXCEPT POSSIBLY IN BRUSSELS, WHERE THE HONG KONG GOVERNMENT OFFICE IS ACCREDITED TO THE BELGIAN GOVERNMENT AS PART OF THE BRITISH EMBASSY TO THAT COUNTRY. WITH HONG KONG HAVING UNDERLINE NEXT TWO WORDS DE JURE AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS IT MAY BE POSSIBLE FOR THE BRUSSELS OFFICE TO BE ACCREDITED WITH EEC DIRECT. HOWEVER THIS HAS NOT BE INVESTIGATED. HONG KONG WILL CONTINUE TO LOOK TO BRITISH POSTS FOR THEIR SUPPORT WHICH SHOULD BE FORTHCOMING GIVEN HMG'S CONTINUED RESPONSIBILITY FOR THE ADMINISTRATION OF HONG KONG UP TO 1997. AS REGARDS THE POST-1997 POSITION, THE SINO-BRITISH JOINT DECLARATION (SECTION VI OF ANNEX I) PROVIDES THAT THE HONG KONG SAR MAY ESTABLISH OFFICIAL AND SEMI-OFFICIAL ECONOMIC AND TRADE MISSIONS IN FOREIGN COUNTRIES AND NEED ONLY REPORT THE ESTABLISHMENT OF SUCH MISSIONS TO THE CENTRAL PEOPLE'S GOVERNMENT FOR THE RECORD.

CONFIDENTIAL

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