TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 171

ご

4. HONG KONG'S CURRENT STATUS IN GATT IS. DERIVED THROUGH THE MEMBERSHIP OF THE UNITED KINGDOM WHICH ALSO ACCEPTED THE GATT IN RESPECT OF THE TERRITORIES (INCLUDING HONG KONG) FOR WHICH IT HAS INTERNATIONAL RESPONSIBILITY. HONG KONG'S RIGHTS AND OBLIGATIONS IN THE GATT WILL THEREFORE LAPSE AS FROM JULY 1997 WHEN HONG KONG BECOMES A SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA, UNLESS APPROPRIATE ACTION IS TAKEN

PRIOR TO THAT DATE.

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 DEEMDED TO BE A CONTRACTING PARTY. ACCORDINGLY THE BRITISH SIDE PROPOSES THAT THE UNTED KINGDOM SHOULD MAKE A DECLARATION IN ACCORDANCE WITH 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 - THEREUPON HONG KONG WILL BE DEEMED TO BE A CONTRACTING PARTY. TO HELP ESTABLISH WITHOUT DOUBT HONG KONG'S POSITION AS A FULLY ACCEPTED CONTRACTING PARTY, THE HONG KONG GOVERNMENT WILL SEPARATELY SUBMIT A STATEMENT TO THE GATT SAYING IT WISHES TO BECOME A CONTRACTING PARTY. THIS POSITION WOULD BE FURTHER ENHANCED IF THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA WERE TO MAKE A STATEMENT AT THE SAME TIME THAT THE SAR ON ITS ESTABLISHMENT ON 1 JULY 1997 WILL CONTINUE TO BE A SEPARATE CUSTOMS TERRITORY WITH FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS AND OF OTHER MATTERS

PROVIDED FOR IN THE GATT.

6. DRAFT TEXTS OF THE DECLARATION WHICH THE BRITISH SIDE PROPOSES SHOULD BE MADE TO THE DIRECTOR-GENERAL OF THE GATT ARE AT APPENDIX

1.

MF A

7. AS REGARDS THE MFA, HAVING REGARD TO THE FACT THAT IT IS OPEN FOR ACCEPTANCE BY GOVERNMENT CONTRACTING PARTIES TO THE GATT, AND HAS BEEN ACCEPTED SPECIFICALLY BY THE UNITED KINGDOM ON HONG KONG'S BEHALF, ONCE THE QUESTION OF ITS GATT STATUS IS SETTLED, ONLY HONG KONG WILL NEED TO NOTIFY THE DIRECTOR-GENERAL OF THE GATT OF ITS DESIRE TO CONTINUE TO PARTICIPATE IN THE ARRANGEMENT.

CCC

8. HONG KONG'S CURRENT STATUS IN THE CCC IS SIMILAR TO THAT IN

RESPECT OF THE GATT.

-2- CONFIDENTIAL

19.