TNAG-1492-FCO40-2050-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 317

CONFIDENTIAL

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

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 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. OUR 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 PORESTALL ANY QUERIES OR

OBJECTIONS.

(NEXT WORD UNDERLINED) ACTION

5.

THE AGREED TEXTS OF THE BRITISH AND CHINESE DECLARATIONS,

TOGETHER WITH THE TEXT OF GATT ARTICLE XXVI(5)(C) AND THE

2- CONFIDENTIAL