TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 73

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Dr Wilson

PS/Mr Luce

Secretary of State

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Text Sent to Peking & Hong Kong 1/7.

WG Ehrman, HKD

FROM:

27 June 1985

Infrer" "DATE:

28

to ince agrees. Amerimazol7.2%

Kinister

Private Secretary

to foretary

cc: Mr Fifoot, Legal Advisers

6 Lof1/7

Miss Wilmshurst, Legal Advisers

Mr Shepherd, EOD (E)

Mr Elliott, FED

TRED

Mr Smith, TRED

Je Si W. Harding'

JOINT LIAISON GROUP: HONG KONG'S PARTICIPATION IN GATT, MFA AND CCC

PROBLEM

1.

To obtain Chinese agreement to procedures designed to secure Honn Kong's continued participation in the General Agreement on Tariffs and Trade (GATT), the Multi-Fibre Arrangement (MFA) and the Customs Cooperation Council (OCC).

RECOMMENDATION

2. I recommend that the attached paper of proposals to this end be approved and that we hand it to the Chinese before the first meeting of the Joint Liaison Group which will take place in London between 22 - 25 July. The paper has been agreed by EXCO and the Hong Kong Government, Peking, UKMIS Geneva, HM Customs and Excise and Legal Advisers. The DTI, who agree at official level, are submitting the

paper to Mr Tebbit in parallel.

BACKGROUND AND ARGUMENT

GATT

3.

As

At present Hong Kong derives its GATT rights and obligations from its status as a dependent territory of the United Kingdom. a result of the change of sovereignty on 1 July 1997, Hong Kong's

in the GATT will status

cease unless s ome means can

found be

transmit such status to the SAR.

to

4.

We propose that Hong Kong's continued participation be ensured by Hong Kong becoming

under Article separate Contracting Party under a

XXVI (5)(c) of the GATT in the period before 1997. To qualify under

this Article it will be necessary:

240/24.

HKK 040

RECEIVE

23 JUL 1985

CONFIDENTIAL

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