TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 238

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CONFIDENTIAL

CALL ON MRS CHALKer by depUTY US TRADE REPRESENTATIVE: 16 APRIL

Essential Facts

1.

At present Hong Kong plays what is in effect an autonomous

role under the GATT, but formally speaking from within the British

delegation. Hong Kong is not a contracting party in its own right.

China at present has indicated its intention to rejoin the GATT, but has not so far formally applied. This will be a difficult issue.

2.

A major objective in our negotiations with China on the future of Hong Kong was to ensure that after 1 July 1997, when Hong Kong will become a Special Administrative region (SAR) of the PRC, its participation and autonomy in the GATT and other similar trading

arrangements should be maintained. The Joint Declaration on Hong

Kong, signed on 19 December 1984, provides that the Hong Kong SAR

will retain the status of a separate customs territory and, using

the name of

of "Hong Kong, China" may on its Own conclude relevant

agreements with States, regions and relevant international

organisations. It will decide its economic and trade policies on its own, and may participate in relevant international organisations

and international trade agreements such as the GATT.

The

Sino-British Joint Liaison Group, established under the terms of the

Joint Declaration, took as an issue for priority consideration

"action

to enable the Hong Kong SAR to maintain its economic

relations as a separate customs territory and in particular to

ensure the maintenance of Hong Kong's participation in the GATT, MFA

and other international arrangements".

Redacted under FOI exemption sections 27 (1)(a), (c), (d)

CONFIDENTIAL