In view of paragraph 4 of Annex ΙΙ to the Joint Declaration, Hong Kong's continuing participation in the GATT and CCC should be addressed at the first meeting of the JLG and it has been agreed with the Chinese that the British side will present them in advance with a paper containing detailed proposals. Early resolution of this question would reassure Hong Kong and its trading partners
trading partners that the basis
for Hong Kong's flourishing free market economy will be able to continue. Moreover, it would be advantageous for Hong Kong to secure its future position within the GATT before too much attention is focussed on China's separate intentions. (see paragraph 5 above).
The proposed procedure
14 Option 3 an early ministers.
(a)
Accordingly, it would be simplest and safest to adopt and to do so as soon as possible. This will require recommendation to the FCO for submission to The procedure envisaged would entail:
a declaration by HMG under Article XXVI 5(c) of the GATT stating that Hong Kong possesses full autonomy in the conduct of its external commercial relations etc. and should thus be deemed to be a full contracting party: (such a declaration would need to be preceded by such appropriate internal steps as necessary to reconcile Hong Kong's practical external commercial competence with the formal legal position under the Letters Patent);
are
(b) a statement from Hong Kong to the GATT saying
it wished to become a contracting party; and
(c) a statement from China to the GATT referring to both (a) and (b) above, and to the Joint Declaration, and confirming
and confirming that when
1 July 1997 Hong Kong becomes a SAR of the PRC, Hong Kong will continue to have the same responsibilities for its external commercial relations. This declaration should not refer to any particular GATT Article.
on
Draft texts of these three types of declaration referred to in this paragraph are at Annex A.
15
Legally, the Chinese declaration might not strictly be necessary. However, such a declaration would help to dispel any doubts entertained by other contracting parties to the GATT. It would also reduce the risk of any
Chinese
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