TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 137

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CONFIDENTIAL

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after 1997 would be facilitated by it being deemed to be

a separate contracting party under this provision as soon as

possible in the interim period. They therefore wish to

make the declaration envisaged in Article XXVI 5(c).

6.

Hong Kong's separate representation in the

organs of the GATT (para 4 above) is a reflection of the

considerable freedom it has in practice enjoyed for a

number of years in conducting its external commercial

relations.

A formal statement of the position in 1969 is

Paras 2 and 3 set out in telno 580 of 29 August 1969.

of that telegram show that, notwithstanding the formal

constitution position:

(a)

(b)

HMG had recognised that in matters not

affecting considerations of British

International Commercial policy, the

Hong Kong Government should determine the

course of, and, where practicable, be

responsible for the conduct of Hong Kong's

external commercial relations;

Where British international commercial

relations were involved, the Hong Kong

/Government

* Footnote: It would not necessarily guarantee it, but

China is currently considering seeking membership of the GATT and, if this comes about, it would provide the same kind of umbrella after 1997 as United Kingdom sponsorship at this stage. However, in any event, GATT secretariat officials, who have been unofficially sounded out, take the view that, if Hong Kong were to have become a contracting party under Article XXVI 5 (c), there would be no question of it ceasing to have that status solely

5 CONFIDENTIAL

(see over)