TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 84

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TERRITORIAL APPLICATION OF THE GENERAL AGREEMENT:

Legal Status of Hong Kong

The 1942 Reciprocal Trade Agreement between Mexico and the

United States, which served to some extent as a model for the

drafters of the General Agreement, contains the following

provisions on territorial application:

Article XV

Furthermore, the provisions of this Agreement relating to most-favored-nation treatment shall aplly to all territory under the sovereignty or authority of the United States of America or the United Mexican States, except that they shall not apply to the Panama Canal Zone.

Article XVI

The advantages now accorded or which may hereafter be accorded by the United States of America, its territories or possessions or the Panama Canal Zone to one another or to the Republic of Cuba shall be excepted from the operation of this Agreement.

In the original GATT (55 UNTS 194), Article XXIV:1 was drafted

as follows:

The rights and obligations arising under this Agreement shall be deemed to be in force between each and every territory which is a separate customs territory and in respect of which this Agreement has been accepted under Article XXVI or is being applied under the Protocol of Provisional Application.

This provision was amended in 1948 to reflect the changes in

the draft charter of the ITO (62 UNTS 57). Article XXIV:1 now

reads:

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