TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 230

Confidential

WITH THIS NEW STATUS, WE SHALL, JF COURSE, CONTINUE TO PLAY OUR FULL PART IN SUPPORT OF THE BASIC PRINCIPLES AND PURPOSES OF THE GATT AND IN DEFENCE OF HONG KONG'S RIGHTS THEREUNDER. THE ONLY OTHER DIFFERENCE WILL BE THAT WE SHALL HAVE TO PAY OUR SHAPE OF THE GATT BUDGET, ESTIMATED TO BE ABOUT SWISS FRANCS 900,000 PER ANNUM, WHICH UP TILL NOW HAS BEEN PART OF THE UK'S CONTRIBUTION AND BORNE OUT OF UK FUNDS. A SUBMISSION FOR THE NECESSARY SUPPLEMENTARY PROVISION WILL BE SUBMITTED TO THE FINANCE COMMITTEE

OF THE COUNCIL SHORTLY.

AND

6. I SHOULD ADD THAT THE DECLARATIONS BY THE BRITISH AND CHINESE GOVERNMENTS MAKE CLEAR THAT THE UK WILL CONTINUE TO HAVE INTERNATIONAL RESPONSIBILITY FOR HONG KONG UNTIL 1 JULY 1997, THAT WITH EFFECT FROM THAT DATE THE PRC WILL HAVE INTERNATIONAL RESPONSIBILITY FOR THE HONG KONG SPECIAL ADMINISTRATIVE REGION. ACCORDINGLY, OUTSIDE THE TRADE FIELD, HONG KONG'S INTERNATIONAL POSITION AND STATUS HAS NOT BEEN AFFECTED HN ANY WAY BY THESE

DECLARATIONS.''

YOUDE

1

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D (FE)

DEP/HD PUSD PS/MR RENTON MR WILSON

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

Confidential