TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 116

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CONTRACTING PARTY STATUS.

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6. THESE LEGAL EXPERTS ARE OF THE VIEW THAT THE PARALLEL STATEMENT

BY CHINA WAS NOT ESSENTIAL, BUT WAS DESIRABLE TO SETTLE ANY DOUBTS

FROM OTHER CONTRACTING PARTIES. THE CURRENT AND FUTURE STATUS OF

CHINA IN GATT WAS ALSO IMMATERIAL TO THE POSITION.

7. THEREFORE URGE THE JAPANESE GOVERNMENT TO ACCEPT THIS POSITION

AND NOT PURSUE ANY COURSE OF ACTION WHICH MIGHT DIRECTLY OR

INDIRECTLY UNDERMINE THE HONG KONG SAR'S GATT STATUS AFTER 1997.

ENDS.

HOWE

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OCMIAN 0205

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CONFIDENTIAL