TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 36

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THE CHINESE SIDE SHOULD AGREE THAT APPROPRIATE STEPS BE TAKEN, AS SOON AS POSSIBLE, TO SECURE SEPARATE CONTRACTING PARTY STATUS FOR 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 CONDUCT

OF ITS EXTERNAL 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 OCCASION AS 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,

IN 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 THE

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

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CONFIDENTIAL