TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 119

CONFIDENTIAL

27279

1

AND OF OTHER MATTERS PROVIDED FOR IN THE GATT. THE BRITISH SIDE ACCORDINGLY PROPOSE THAT IMMEDIATELY FOLLOWING THE SUBMISSION OF

THE HONG KONG STATEMENT TO THE GATT SECRETARIAT, THE GOVERNMENT OF THE PRC MIGHT WISH TO SUBMIT TO IT AN APPROPRIATE STATEMENT O

ITS OWN SO THAT THESE MATTERS ARE ACKNOWLEDGED AND DULY NOTED.

THE GATT SECRETARIAT WOULD NO DOUBT WISH TO TAKE ANY SUCH

STATEMENT INTO ACCOUNT WHEN NOTIFYING CONTRACTING PARTIES TO THE

GATT ABOUT HONG KONG'S CHANGE OF STATUS WITHIN THE GATT.

11.

APPENDIX 1 TO THIS PAPER CONTAINS THE BRITISH SIDE'S

PROPOSALS FOR THE THREE TYPES OF DECLARATION WHICH, UNDER THE ARTICLE XXVI (5)(C) PROCEDURE COULD BE SUBMITTED TO THE

DIRECTOR-GENERAL OF THE GATT.

HONG KONG AND THE MFA

12. THE MFA IS A NEGOTIATED DEROGATION FROM THE NORMAL GATT

RULES MODIFYING THE FREE TRADE PRINCIPLES OF THE GATT IN THE

CONTEXT OF TEXTILES AND CLOTHING. HONG KONG IS ABLE TO DEVELOP

ITS TRADE WITHIN THE MPA AND THE BILATERAL ARRANGEMENTS

NEGOTIATED UNDER THE PROVISIONS.

13. THE MPA IS OPEN FOR ACCEPTANCE BY CONTRACTING PARTIES OF THE GATT. THE UNITED KINGDOM HAS ACCEPTED THE MFA ON HONG KONG'S BEHALF. IF, AS THE BRITISH SIDE PROPOSE, HONG KONG (AND LATER THE HONG KONG SAR) WERE TO BECOME A SEPARATE CONTRACTING PARTY TO THE GATT, IT IS THE UNDERSTANDING OF THE BRITISH SIDE THAT CONTINUING PARTICIPATION IN THE MFA AND IN ANY SUCCESSOR REGIME

WOULD BE SECURED SIMPLY BY HONG KONG NOTIFYING THE GATT

DIRECTOR-GENERAL OF ITS WISHES IN THIS RESPECT.

HONG KONG AND THE CCC

14. HONG KONG'S POSITION IN THE CCC IS ANALAGOUS TO THAT IN

GATT. HONG KONG CURRENTLY ATTENDS SOME OF THE TECHNICAL MEETINGS OF THE CCC AS PART OF THE UK DELEGATION. HOWEVER, AS HONG KONG

IS AUTONOMOUS IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS AND, IN ACCORDANCE WITH THE JOINT DECLARATION ON THE QUESTION OF HONG KONG, THE HONG KONG SAR WILL, WHEN ESTABLISHED, CONTINUE TO ENJOY THIS DEGREE OF AUTONOMY, THE BRITISH SIDE ACCORDINGLY PROPOSES THAT THEY AND THE CHINESE SIDE SHOULD AGREE THAT APPROPRIATE STEPS

BE TAKEN AS SOON AS POSSIBLE TO SECURE HONG KONG'S CONTINUING

CONFIDENTIAL