TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 44

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to

immediately following the submission of the Hong Kong statement

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.

A

11. 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.

HONG KONG AND THE MEA

from the normal GATT rules

12. The MFA is a negotiated derogation

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

14. 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

i s Hong Kong

autonomous in the conduct of its external commercial relations and

in accordance with the Joint

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 they and the Chinese side should agree that appropriate steps be tak en as Soon as possible to secure Hong Kong's separate membership

in the CCC, up to and after 1997, along the lines

lines envisaged for the

GATT.

that

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