TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 127

CONFIDENTIAL

HWko4/24

-2 JUL 1985

GRS 540

CONFIDENTIAL

FM UKMIS GENEVA 180800Z JUNE 85

TO PRIORITY FCO

TELNO 237 OF 18 JUNE

AND TO PRIORITY DTI

INFO PRIORITY HONG KONG, PEKING

BRUSSELS, WASHINGTON

दारा

CHY

so on Taken

HONG KONG TELNO 1178 AND TELECON GALSWORTHY/MONTGOMERY:

GATT: HONG KONG'S FUTURE STATUS

1. HEREWITH AS REQUESTED COMMENTS ON THE DRAFT PAPER FOR THE

JOINT LIAISON GROUP (JLG) WHICH TAKE INTO ACCOUNT PEKING TELNO 943.

2. IN OUR VIEW THE MAIN POINT TO EMPHASIZE IS THAT THE ARRANGE-

MENTS PROPOSED FOR SECURING HONG KONG'S STATUS AS A FULL CONTRACTING PARTY (CP) TO THE GATT CONSTITUTE A ROUTINE FORMALITY WHICH CAN

BE IMPLEMENTED IN ACCORDANCE WITH NORMAL PRACTICE. THE ONLY

DEPARTURE FROM THE NORM WOULD BE THE PROPOSED DECLARATION BY

THE CHINESE GOVERNMENT WHICH THE UK IS PROPOSING IN ORDER TO TAKE

ACCOUNT OF THE UNUSUAL FACT THAT IN THIS INSTANCE THE SOVEREIGNTY

OF THE AUTONOMOUS TERRITORY TO WHICH THE GATT WILL BE DEEMED TO

APPLY WILL CHANGE W.E.F. 1JULY 1997.

3. WE THEREFORE SUGGEST THAT PARAGRAPH 5 OF THE DRAFT BE AMENDED

AND REPLACED BY PARAGRAPH 5-10 AS FOLLOWS:

QUOTE

5. ARTICLE XXV(5)(C) OF THE GATT PROVIDES 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.

6. THE GATT CPS HAVE ESTABLISHED STANDARD PROCEDURES FOR USE IN

SUCH CASES (BASIC INSTRUMENTS AND SELECTED DOCUMENTS 6S, 95/16

AND 15S/64) WHEREBY THE SPONSORING PARTY FORMALLY NOTIFIES THE GATT

OF THE AUTONOMOUS STATUS OF THE TERRITORY CONCERNED AND THE

TERKITORY IN QUESTION CAN INDICATE TO THE GATT ITS WISH TO BE

DEEMED TO BE A CONTRACTING PARTY.

7.

ACCORDINGLY IT IS THE INTENTION OF THE BRITISH SIDE THAT,

WITH THE FULL KNOWLEDGE OF THE PRC, AS THE FUTURE SOVEREIGN AUTHORITY

IN HONG KONG, THE UNITED KINGDOM SHOULD NOW MAKE A DECLARATION

IN ACCORDANCE WITH ARTICLE XXVI(5)(C) OF THE GATT THAT HONG KONG

POSSESSESS FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL

RELATIONS AND OF THE OTHER MATTERS PROVIDED FOR IN THE GATT.

CONFIDENTIAL

18.

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