TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 182

CONFIDENTIAL

31030 - 1

3.

THE TEXT OF THE PROPOSED RELEASE IN HONG KONG TELNOS 1146

AND 1153 SEEMS TO US TO NEED MINOR FACTUAL AMENDMENT. WE IMAGINE

(GRATEFUL FOR UKMIS' CONFIRMATION) THAT THE DG OF THE GATT WILL

NOT (NOT) ANNOUNCE TO ALL CPS THAT HONG KONG IS DEEMED TO BE A

CONTRACTING PARTY. NOTIFICATION WILL SIMPLY BE BY MEANS OF

CIRCULATION OF THE DECLARATIONS. FURTHERMORE, WE DO NOT

UNDERSTAND THE SENTENCE: 'FOLLOWING THE ANNOUNCEMENT THAT HMG HAS

FORMALLY INFORMED THE DIRECTOR GENERAL ETC'. WE ARE NOT PLANNING

ANY SUCH ANNOUNCEMENT.

5.

TO TAKE ACCOUNT OF THESE POINTS WE SUGGEST THAT THE FIRST

2 PARAGRAPHS OF THE PRESS RELEASE SHOULD READ:

'ON (DATE) ALL CONTRACTING PARTIES OF THE GATT WERE

NOTIFIED BY THE GATT SECRETARIAT THAT, FOLLOWING A

DECLARATION BY THE UNITED KINGDOM, HONG KONG IS NOW

DEEMED TO BE A GATT CONTRACTING PARTY UNDER ARTICLE XXVI

(5)(C) OF THE GATT.

IN THE UK DECLARATION, HMG FORMALLY INFORMED THE DIRECTOR

GENERAL OF THE GATT THAT HONG KONG POSSESSES FULL

AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL

RELATIONS AND OF THE OTHER MATTERS PROVIDED FOR IN THE

GATT. AT THE SAME TIME, THE GOVERNMENT OF THE PRC MADE A

PARALLEL DECLARATION ABOUT THE STATUS OF THE HONG KONG

SAR AFTER 1 JULY 1997. HONG KONG WILL HENCEFORTH ASSUME

THE RIGHTS AND OBLIGATIONS OF A CONTRACTING PARTY TO THE

GATT IN ITS OWN RIGHT.'

HOWE

HONG KONG AGREEMENT : RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D (FE)

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

DEP/HD PUSD

PS/MR RENTON MR WILSON

CONFIDENTIAL