TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 87

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The GATT

CONFIDENTIAL

4.

At present Hong Kong's formal position in the GATT is a consequence of the United Kingdom's status as a Contracting Party, ie the GATT applies in general to the dependent territories as well as the metropolitan territory of the Contracting Parties

(Article XXVI 5(a)). In practical terms however Hong Kong already occupies a separate position in the organs of the GATT from that of the United Kingdom. Although Hong Kong attends

meetings of the GATT as a member of the UK delegation, since the United Kingdom acceded to the European Communities in 1973, Hong Kong representatives at meetings of the Council of GATT and its various committees have not been required to consult, much less coordinate, their positions with those of United Kingdom

representatives. There are a number of occasions on which Hong Kong representatives adopted a position in opposition to, or inconsistent with the EC (ie UK) position.

Formal provision for a separate status in the GATT is made in Article XXVI 5 (c) which provides:-

5.

*

"If any of the customs territories, in respect of which

a contracting party has accepted this Agreement, possesses or acquires full autonomy in the conduct of its external commercial relations and of the other

matters provided for in this Agreement, such territory shall, upon sponsorship through a declaration by the responsible contracting party establishing the above- mentioned fact, be deemed to be a contracting party.".

/It

* Footnote:

There is another possible provision in Article XXXIII, but the United Kingdom does not wish to pursue that route in view of the provision for a vote.

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CONFIDENTIAL