TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 229

GRS 500 CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1121

Confidential,

TOP COPY

OF 16084OZ APRIL 86

INFO IMMEDIATE PEKING, UKMIS GENEVA

UKMIS GENEVA PLEASE ALSO PASS COPY TO CARTLAND

(173)

MIPT: HONG KONG AND GATT : PUBLICITY

HKK 122/1

RECI VEC IN REGISTRY 1 8 APR 1986

INDEX

PA

son Taken

SUGGESTED STATEMENT IN THE LEGISLATIVE COUNCIL AS FOLLOWS :

**FOLLOWING THE ANNOUNCEMENT THAT HMG HAS 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, AND THAT THE GOVER-

NMENT OF THE PRC HAS MADE A PARALLEL DECLARATION ABOUT THE STATUS

OF THE HONG KONG SAR AFTER 1 JULY 1997, AM SURE MEMBERS WILL WISH

ME TO EXPLAIN THE IMPLICATIONS OF THIS ON OUR STATUS IN

INTERNATIONAL TRADE.

2. BY VIRTUE OF HMG'S DECLARATION, AND THE PROVISIONS OF ARTICLE XXV:* (5) (C) OF THE GATT, HONG KONG IS DEEMED TO BE A CONTRACTING

PARTY TO THE GATT. THIS MEANS THAT HONG KONG 'S TREATED AS IF IT

WERE A CONTRACTING PARTY TO THE GATT.

3. THE DECLARATION OF THE CHINESE GOVERNMENT MAKES CLEAR THAT AS

FROM 1 JULY 1997 THE HONG KONG SAR WILL MEET THE REQUIREMENTS FOR

A SEPARATE CUSTOMS TERRITORY TO BE DEEMED TO BE A CONTRACTING

PARTY AS PRESCRIBED IN GATT ARTICLE XXVI (5)(C), AND THEREFORE

MAY, USING THE NAME HONG KONG, CHINA', CONTINUE TO BE DEEMED TO

BE A CONTRACTING PARTY TO THE GATT.

AB18

4. BY THESE DECLARATIONS THE BRITISH AND CHINESE GOVERNMENTS HAVE

TAKEN THE NECESSARY CONCRETE STEPS ENVISAGED IN PARAGRAPH 4(A) OF

ANNEX TO THE JOINT DECLARATION TO SECURE THE HONG KONG SAR'S

RIGHTS AND OBLIGATIONS UNDER THE GATT AND THE MEA IN CONTINUATION

OF HONG KONG'S CURRENT STATUS. AM SURE MEMBERS WILL AGREE THAT

THIS IS A MOST PRACTICAL WAY OF ENSURING HONG KONG'S AND THE FUTURE

SAR'S CONTINUING STABILITY AND PROSPERITY.

5. AS HONG KONG HAS FOR SOME YEARS BEEN PLAYING AN AUTONOMOUS

ROLE IN THE GATT AND THE MFA FROM WITHIN THE BRITISH DELEGATION

THERE WILL BE LITTLE VARIATION OF SUBSTANCE IN OUR FUTURE ROLE ON

BEING DEEMED TO BE A CONTRACTING PARTY TO THE GATT. ONE CHANGE

HAS THAT HONG KONG REPRESENTATIVES WILL NOW SPEAK IN HONG KONG'S

NAME, RATHER THAN AS 'THE UNITED KINGDOM SPEAKING FOR HONG KONG'.

Confidential

./WITH

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