TNAG-1655-FCO40-2303-Hong-Kong-and-the-Customs-Co-operation-Council-(CCC)-1987 — Page 186

OCMIAN 9502

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PP PEKIN

FM FCOLN TO PEKIN

211100Z APR

GRS 769

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TO PRIORITY HONG KONG

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OF 211100Z APRIL 87

INFO PRIORITY PEKING

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MIPT HONG KONG AND THE CCC.

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FOLLOWING IS DRAFT TEXT OF BACKGROUND MATERIAL WHICH

WOULD BE SENT TO BE BRUSSELS.

BEGINS

FOLLOWING THE ENTRY INTO FORCE IN MAY 1985 OF THE JOINT DECLARATION ON THE QUESTION OF HONG KONG BETWEEN THE GOVERNMENT OF THE PEOPLES REPUBLIC OF CHINA AND HER MAJESTY'S GOVERNMENT, THE BRITISH AND CHINESE SIDES BEGAN THE PROCESS OF CONSULTATION ON THE IMPLEMENTATION OF THE JOINT DECLARATION AND ITS ANNEXES. THE SINO-BRITISH JOINT LIAISON GROUP, ESTABLISHED UNDER THE TERMS OF THE JOINT DECLARATION, TOOK AS AN ISSUE FOR PRIORITY

CONSIDERATION QUOTE ACTION

TO ENABLE THE HKSAR TO MAINTAIN

ITS ECONOMIC RELATIONS AS A SEPARATE CUSTOMS TERRITORY AND IN PARTICULAR TO ENSURE THE MAINTENANCE OF HONG KONG'S PARTICIPATION IN THE GATT, MFA AND OTHER INTERNATIONAL ARRANGEMENTS. UNQUOTE. THUS ONE OF THE MOST IMPORTANT EARLY RESULTS ARISING OUT OF THESE ONGOING DISCUSSIONS WAS AGREEMENT THAT HONG KONG SHOULD BECOME A SEPARATE CONTRACTING PARTY TO THE GATT, COMMENSURATE WITH ITS STATUS AS A SEPARATE CUSTOMS TERRITORY HAVING AUTONOMY IN ITS EXTERNAL COMMERCIAL RELATIONS. FOLLOWING THIS AGREEMENT BETWEEN THE BRITISH AND CHINESE GOVERNMENTS, STEPS WERE TAKEN JOINTLY BY

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