TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 118

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HONG KONG WITHIN THE GATT. GATT ARTICLE XXVI (5)(C) PROVIDES FOR THIS. IT STATES THAT:

'IF ANY OF THE CUSTOMS TERRITORIES, IN RESPECT OF WHICH A CONTRACTING PARTY HAS ACCEPTED THIS AGREEMENT, POSSESSES OR ACQUIRES FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL

RELATIONS AND OF THE OTHER MATTERS PROVIDED FOR IN THIS

AGREEMENT, SUCH TERRITORY SHALL, UPON SPONSORSHIP THROUGH A DECLARATION BY THE RESPONSIBLE CONTRACTING PARTY ESTABLISHING THE ABOVE MENTIONED FACT, BE DEEMED TO BE A CONTRACTING PARTY'.

8. THE CONTRACTING PARTIES TO THE GATT HAVE ESTABLISHED STANDARD

PROCEDURES WHICH ARE USED WHERE RECOURSE IS MADE TO GATT ARTICLE XXVI (5) (C). THE SPONSORING PARTY NOTIFIES THE GATT FORMALLY

THAT THE TERRITORY IN QUESTION POSSESSES FULL AUTONOMY IN THE COND-

UCT OF ITS EXTERNAL COMMERCIAL RELATIONS. THAT TERRITORY CAN THEN

INFORM THE GATT THAT IT WISHES TO BE DEEMED A CONTRACTING PARTY

TO THE AGREEMENT.

9. THE BRITISH SIDE PROPOSE THAT IN ACCORDANCE WITH THESE PROCEDURES THE UNITED KINGDOM SHOULD NOW MAKE A DECLARATION TO

THE GATT, UNDER ARTICLE XXVI(5)(C), THAT HONG KONG POSSESSES FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS AND

OF THE OTHER MATTERS PROVIDED FOR IN THE GATT. THE BRITISH SIDE

ALSO PROPOSE THAT, ON THE SAME DAY AND IMMEDIATELY FOLLOWING THE

DEPOSITION OF THE UNITED KINGDOM DECLARATION WITH THE GATT

SECRETARIAT, HONG KONG WOULD SUBMIT A STATEMENT TO THE GATT

DECLARING, IN STANDARD TERMS, ITS WISH TO BE TREATED AS A

CONTRACTING PARTY TO THE GATT. IN ACCORDANCE WITH STANDARD

PRACTICE, THE GATT SECRETARIAT WOULD THEN NOTIFY ALL CONTRACTING

PARTIES THAT HONG KONG HAD BECOME A FULL CONTRACTING PARTY.

10. THE BRITISH SIDE BELIEVE IT WOULD BE HELPFUL TO HONG KONG, I

THIS SITUATION, IF THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF

CHINA (PRC) WERE TO REMIND THE GATT SECRETARIAT AND GATT

CONTRACTING PARTIES THAT HONG KONG WILL BECOME A SAR OF THE PRC

ON 1 JULY 1997 AND THAT THE SINO-BRITISH JOINT DECLARATION ON TH

QUESTION OF HONG KONG PROVIDES FOR THE SAR TO CONTINUE TO BE A

SEPARATE CUSTOMS TERRITORY ENJOYING THE SAME DEGREE OF AUTONOMY

AS AT PRESENT IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATION

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CONFIDENTIAL