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Redacted under FOI exemption section 27 (1)
4. THE BRITISH AND CHINESE GOVERNMENTS HAVE NOW AGPEED THAT THE BEST COURSE OF ACTION TO ENSURE HONG KONG'S CONTINUED PARTICIPATION IN THE GATT AFTER 1 JULY 1997 IS FOR THE UK GOVERNMENT TO MAKE A DECLARATION TO THE GATT UNDER GATT ARTICLE XXVI (5) (C) WHICH WILL THEN RESULT IN HONG KONG BEING DEEMED TO BE A CONTRACTING PARTY TO THE GATT, AND FOR THE PRC GOVERNMENT TO MAKE A PARALLEL DECLARATION ABOUT THE STATUS OF THE HK SAP AFTER 1 JULY 1997. IT WAS AGREED THAT APPROACHES WOULD BE MADE BY THE TWO GOVERNMENTS, SEPARATELY BUT IN PARALLEL, TO AN AGREED LIST OF KEY CONTRACTING PARTIES IN ADVANCE OF THE MAKING OF THE DECLARATIONS. THE INTENTION WOULD NOT/ NOT BE TO CONSULT THEM, BUT TO GIVE ADVANCE INFORMATION OF OUR INTENDED ACTION AND SEEK TO FORESTALL ANY QUERIES OP OBJECTIONS.
ACTION
5. THE AGREED TEXTS OF THE BRITISH AND CHINESE DECLARATIONS, TOGETHER WITH THE TEXT OF GATT ARTICLE XXVI (5) (C) AND THE DECLARATION MADE BY THE UK ON 28 JUNE 1943 CONCERNING THE APPLICATION OF THE GATT TO HONG KONG (SEE PAPA 8 BELOW) APE IN MIFT. THE GENERAL TERMS OF THE LINE TO TAKE SET OUT BELOW HAVE BEEN AGREED WITH THE CHINESE GOVERNMENT. YOU SHOULD CHECK WITH YOUR CHINESE COLLEAGUE THAT HE HAS RECEIVED SMILAR INSTRUCTIONS AND THEN TAKE SEPARATE BUT CO-ORDINATE ACTION AT A SUITABLY HIGH LEVEL WITH YOUR HOST GOVERNMENT. ACTION SHOULD BE TAKEN BOTH AT A POLITICAL LEVEL, AND, PROVIDED THAT YOU JUDGE IT APPROPRIATE, AT A TECHNICAL LEVEL. IN PARTICULAR WE WISH TO GET OVER AT A POLITICAL LEVEL THE VERY GPEAT IMPORTANCE OF THIS ISSUE FOP CONFIDENCE IN HONG KONG AND THE NEED FOR ALL CONCERNED TO LIVE UP TO THEIR POLITICAL EXPRESSIONS OF SUPPORT FOR THE JOINT DECLARATION RY WELCOMING THIS PROPOSAL. YOU SHOULD NOT (NOT) HAND OVER THE TEXT OF THE PLANNED DECLARATIONS. ŪKNIS GENEVA SHOULD TAKE PARALLEL ACTION WITH GATT DELEGATIONS.
LINE TO TAKE
CON-IDENTIAL
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