Issue
CONFIDENTIAL-
7
Objective/explanation
Secretary for Trade and Industry (Cont'd)
Present status/progress
China
interest
UK
interest
Taiwan's Possible Application for Contracting Party Status in the GATT
The Coordinating
Committee for Multilateral
Exports Controls
(COCOM)
China has invited all GATT contracting parties for tariff concession negotiations in connection with her application for resumption.
Taiwan applied for GATT membership on 1 January 1990 on behalf of the Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
Hong Kong's status in the context of COCOM after 1997 has to be resolved. Hong Kong is not a member of COCOM but because UK is, Hong Kong is currently enjoying uninhibited access
In view of the above position, the question of whether HK should enter into tariff negotiations with China has been shelved.
Considerable ground work had been laid by Taiwan. Taiwan has lobbied a number of contracting parties to the GATT for support. PRC has lodged an objection to the GATT on the ground that the PRC is the sole legal government of China and Taiwan's application is illegal. It is not known at this stage when Taiwan's application would be
formally considered by the GATT Council given the objection of PRC and other wider implications.
Both FCO and DTI are supportive of HK's stance on COCOM. The intention is to hold trilateral discussions with the US, Japan et al. Action currently rests with DTI.
CONFIDENTIAL
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