TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 74

(a)

and

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for HMG to make a declaration stating that Hong Kong possesses

full autonomy in the conduct of its external commercial

relations

(b) for Hong Kong to make a declaration stating that it wishes

become a Contracting Party.

a

to

To ensure that there are по doubts amongst other Contracting Parties

about the status of Hong Kong, it would be helpful if the Chinese

would mak e

statement referring to the British and Hong Kong

statements and to the Joint Declaration and confirming that on 1

July 1997, when Hong Kong becomes an SAR, it will continue to

to have

the same responsibilities for its external commercial relations.

5.

in

approach would either be (a) to

1997 when China, as metropolitan

or respect of Hong Kong,

(b) for

in the meantime.

The alternatives to this

maintain the status quo until

would accept power,

in the GATT

Hon- Kong to accede to the GATT on terms to be agreed with the

Contracting Parties

accordance with GATT Article XXXIII. The

difficulty with the first of these options is that it could not be exercised until 1997 and uncertainty would remain

China is not yet a member of the GATT and it is impossible to say

for sure that she will have become one by then. Furthermore, it is

preferable for obvious reasons that Hong Kong should enjoy an

independent status in the GATT rather than participate under a Chinese umbrella. The difficulty with the second option is that

to Hong agreement

Kong' s accession under Article XXXI I I would

require negotiation of new terms o f

entry and

and two-thirds majority

support of the Contracting Parties, which might not be easy to secure. The procedure proposed in paragraph 5 above is preferable

to these two options because:

(a)

it would be made independently of the question of China's

membership in the GATT;

(b)

(c)

a

time mutually acceptable

it would avoid having to involve Hong Kong in negotiating entry

terms with the Contracting Parties; and

it would enable Hong Kong to acquire separate GATT status

the to China,

and Hona Kong

through declarations by the United Kingdom and Hong Kong.

at

UK

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