TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 37

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SEPARATE CUSTOMS TERRITORY ENJOYING THE SAME DEGREE OF AUTONOMY AS AT PRESENT IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS

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 OF

ITS OWN SO THAT THESE MATTERS WERE 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.

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.

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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 MFA AND THE BILATERAL ARRANGEMENTS

NEGOTIATED UNDER THE PROVISIONS.

13. THE UNITED KINGDOM HAS ACCEPTED THE MFA ON HONG KONG' S BEHALF. IF, AS THE BRITISH SIDE PROPOSE HONG KONG 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

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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

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CONFIDENTIAL