TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 109

HK2ACZ

CONFIDENTIAL

SINO-BRITISH JOINT LIAISON GROUP (JLG):

MEETING 22-25 1985

HONG KONG'S CONTINUING PARTICIPATION IN THE GENERAL AGREEMENT ON

· TARIFFS AND TRADE (GATT) AND THE CUSTOMS COOPERATION COUNCIL (CCC)

1. The purpose of this paper is to explain the arrangements which the British side believe would secure the best possible basis for Hong Kong's continuing participation in:

(i)

the GATT;

(ii) the MFA;

(iii) the CCC.

up to and after 1997.

The British side suggest that these inter-related matters

be considered together.

HONG KONG AND THE GATT

2. Hong Kong's participation in the GATT, through which it enjoys most favoured nation rights of access for its goods, has been a key element in its success as an exporter. During the Sino-British talks on the future of Hong Kong, the British and Chinese sides 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.

3. As a reflection of this, "Section VI of Annex I to the Sino-British Joint Declaration on the question of Hong Kong makes provision for the future Hong Kong Special Administrative Region (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.

4. Paragraph 4 of Annex II to the Joint Declaration states that matters for consideration during the first half of the period between the establishment of the Joint Liaison Group and 1 July 1997

CONFIDENTIAL