TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 239

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(22.

CONFIDENTIAL

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

Our

4.

The British and Chinese Governments have now agreed that the

best course of action to ensure Hong Kong's continued participation

in the GATT after 1 July 1997 is for the UK Government to make a declaration to the GATT under GATT Article XXVI (5) (c) which will

XXVI(5)(c)

then result in Hong Kong being deemed to be a contracting party to

the GATT, and for the PRC Government to make a parallel declaration

about the status of the Hong Kong SAR after 1 July 1997. It was

agreed that approaches would be made by the two Governments, separately but in parallel, to an agreed list of key contracting

parties in advance of the making of the declarations. understanding (confirmed by informal consultations with the GATT Secretariat) is that the proposed procedure does not require the

consent of other GATT members, or offer them an opportunity to object. Our intention in making these approaches is not, therefore, to consult, or seek the approval of, other GATT members, but to give advance information of our intended action and seek to forestall any

queries or objections. We also want to get over the very great importance of this issue for confidence in Hong Kong and the need for all concerned to live up to their political expressions of support for the Joint Declaration by acquiesing in this proposal.

CONFIDENTIAL