TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 313

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GOVERNMENTS TO GIVE THESE PROVISIONS PRACTICAL EFFECT.

7.

HONG KONG PLAYS AN IMPORTANT AND POSITIVE ROLE IN THE

WORLD TRADING SYSTEM. IT IS COMMITTED TO FREE TRADE IN

ACCORDANCE WITH THE PRINCIPLES AND PRACTICES OF THE GATT. IT IS

IN THE INTERESTS OF THE DEVELOPMENT OF INTERNATIONAL TRADE THAT

IT SHOULD BE ABLE TO CONTINUE PLAYING ITS PRESENT ROLE. WE WOULD

EXPECT CONTRACTING PARTIES TO WELCOME ARRANGEMENTS THAT ARE

INTENDED TO ENSURE THIS, WITHIN THE PROCEDURES LAID DOWN BY THE

GATT.

(NEXT TWO WORDS UNDERLINED) DEFENSIVE POINTS

(OPEN SQUARE BRACKETS) IF IT IS SUGGESTED THAT USE OF ARTICLE

XXVI(5)(C) IS NOT APPROPRIATE. (CLOSE SQUARE BRACKETS)

8.

THE USE OF ARTICLE XXVI(5)(C) IS APPROPRIATE IN THE CASE

OF HONG KONG WHOSE PARTICIPATION IN THE GATT IS DERIVED FROM THE

UK'S ACCEPTANCE OF THE AGREEMENT IN 1948 ON BEHALF OF ITSELF AND

THE TERRITORIES FOR WHICH IT THEN HAD INTERNATIONAL

RESPONSIBILITY (EXCEPT JAMAICA).

(OPEN SQUARE BRACKETS) IF IT SUGGESTED THAT A CONTRACTING PARTY

SHOULD BE A SOVEREIGN STATE. (CLOSE SQUARE BRACKETS)

9.

THIS IS NOT SO. ALTHOUGH ALL CONTRACTING PARTIES ARE

CURRENTLY SOVEREIGN STATES THIS WAS NOT ALWAYS THE CASE. IT IS

CLEAR FROM THE AGREEMENT THAT A CONTRACTING PARTY CAN BE EITHER

THE GOVERNMENT OF A SOVEREIGN STATE OR THE GOVERNMENT OF A

SEPARATE CUSTOMS TERRITORY.

(OPEN SQUARE BRACKETS) IF IT IS SUGGESTED THAT HONG KONG DOES NOT

ENJOY AUTONOMY IN EXTERNAL COMMERCIAL RELATIONS. (CLOSE SQUARE

BRACKETS)

10.

SINCE THE UK'S ACCEPTANCE OF THE AGREEMENT IN 1948 ON

BEHALF OF HONG KONG, ITS ROLE HAS EVOLVED CONSIDERABLY. IT IS TO

ALL INTENTS AND PURPOSES ALREADY OPERATING AS IF IT WERE A

SEPARATE CONTRACTING PARTY. ITS AUTONOMY IN EXTERNAL COMMERCIAL

RELATIONS HAS BEEN READILY ACCEPTED BY OTHER CONTRACTING PARTIES

TO THE GATT. THIS IS ILLUSTRATED BY THE FACT THAT THE HONG KONG

SPOKESMAN INTERVENES FREELY IN THE SESSIONS OF THE GATT

CONTRACTING PARTIES, THE HIGHEST AUTHORITY IN THE GATT, AND HE

HAS SERVED AS CHAIRMAN OF COMMITTEES AND ON PANELS IN THAT

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