TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 314

J

CONFIDENTIAL

28131

1

CAPACITY.

THE UK DECLARATION WILL BE FORMAL PUBLIC CONFIRMATION

OF HONG KONG'S AUTONOMY IN EXTERNAL COMMERCIAL RELATIONS.

(OPEN SQUARE BRACKETS) IF IT SHOULD BE SUGGESTED THAT ARTICLE

XXVI(5)(C) IS INTENDED FOR TERRITORIES BECOMING INDEPENDENT. (CLOSE SQUARE BRACKETS)

11.

THERE ARE PRECEDENTS FOR GIVING SEPARATE CONTRACTING

PARTY STATUS FOR TERRITORIES WHICH WERE NOT FULLY INDEPENDENT.

THE MOST OBVIOUS IS SOUTHERN RHODESIA WHICH ENJOYED CONTRACTING

PARTY STATUS AT A TIME WHEN IT WAS NOT PROCEEDING TOWARDS

INDEPENDENCE BUT ENJOYED DELEGATED AUTHORITY IN EXTERNAL

COMMERCIAL RELATIONS. INDEED ARTICLE XXVI(5) (C) WAS DRAFTED

EXPLICITLY WITH THIS SORT OF CASE, AND THE EXAMPLE OF BURMA,

CEYLON AND SOUTHERN RHODESIA, IN MIND.

(OPEN SQUARE BRACKETS) IF IT SHOULD BE ARGUED THAT THE TERMS OF

HONG KONG'S NEW STATUS OF THE GATT SHOULD BE SUBJECT TO

NEGOTIATION. (CLOSE SQUARE BRACKETS)

12.

THE PROCEDURE DOES NOT INVOLVE ANY NEGOTIATION OF TERMS.

THE GATT HAS ALREADY CLEARLY ESTABLISHED THAT 'A GOVERNMENT

BECOMING A CONTRACTING PARTY UNDER ARTICLE XXVI(5)(C) DOES SO ON

THE TERMS AND CONDITIONS PREVIOUSLY ACCEPTED BY THE METROPOLITAN

GOVERNMENT ON BEHALF OF THE TERRITORY IN QUESTION' (GATT WORKING

PARTY REPORT ON THE OPERATION OF ARTICLE XXXV IN RESPECT OF

JAPAN: DOCUMENT BISD TENTH SUPPLEMENT, PAGE 73, ADOPTED BY THE

CONTRACTING PARTIES ON 7 DECEMBER 1961).

(OPEN SQUARE BRACKETS) HONG KONG AS AN INDEPENDENT POLITICAL

ENTITY? (CLOSE SQUARE BRACKETS)

13.

IT IS CLEAR FROM THE TERMS OF THE GATT THAT A CONTRACTING

PARTY CAN BE EITHER THE GOVERNMENT OF A SOVEREIGN STATE OR THE

GOVERNMENT OF A SEPARATE CUSTOMS TERRITORY. IN THE PROCEDURE TO

BE ADOPTED BY THE BRITISH AND CHINESE GOVERNMENTS THERE IS NO

IMPLICATION WHATSOEVER THAT HONG KONG IS OR WILL BECOME AN

INDEPENDENT POLITICAL ENTITY. IT IS QUITE CLEAR FROM THE TERMS

OF THE JOINT DECLARATION THAT THE UK WILL CONTINUE TO HAVE

INTERNATIONAL RESPONSIBILITY FOR HONG KONG UNTIL 1 JULY 1997 AND

THAT THE PRC WILL HAVE INTERNATIONAL RESPONSIBILITY FOR THE HONG

KONG SPECIAL ADMINISTRATIVE REGION THEREAFTER.

4

CONFIDENTIAL

| COPEN

}