TNAG-2112-FCO40-3011-International-Rights-and-Obligations-Sub-Group-of-the-Sino-B-1990 — Page 19

CONFIDENTIAL

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MDHIAN128.

2. THE UNITED KINGDOM RATIFIED THE CONVENTION ON 23 MAY 1958 (TEXT AT ANNEX A). THE CONVENTION ENTERED INTO FORCE ON 4 AUGUST

1959 IN ACCORDANCE WITH ARTICLE 13. ARTICLE 16 PROVIDES THAT ANY COUNTRY MAY, AT THE TIME OF SIGNING THIS CONVENTION WITHOUT RESERVATION OF RATIFICATION OR OF DEPOSITING ITS INSTRUMENT OF RATIFICATION OR ACCESSION OR AT ANY TIME THERE AFTER, DECLARE BY NOTIFICATION THAT THIS CONVENTION EXTENDS TO ALL OR ANY OF THE TERRITORIES FOR THE INTERNATIONAL RELATIONS OF WHICH IS IT

RESPONSIBLE. THE UNITED KINGDOM MADE SUCH A DECLARATION IN RESPECT OF HONG KONG ON 12 DECEMBER 1974 (TEXT AT ANNEX B).

BENEFITS

3. THIS CONVENTION HELPS TO DEVELOP AND FACILITATE THE USE OF CONTAINERS IN INTERNATIONAL TRAFFIC BY PROVIDING FOR THE TEMPORARY IMPORTATION OF CONTAINERS FREE OF IMPORT DUTIES AND RESTRICTIONS. HONG KONG HAS THE LARGEST CONTAINER PORT IN THE WORLD HANDLING TONNES A DAY. TO HONG KONG WHOSE ECONOMY IS HEAVILY DEPENDENT ON FREE TRADE THROUGH THIS HUGE CONTAINER PORT, THE CUSTOMS EXEMPTIONS AND THE FACILITIES PROVIDED BY THE CONVENTION ARE CRUCIAL.

PROPOSALS

4. THE BRITISH SIDE PROPOSE THAT THE CONVENTIONS, TOGETHER WITH ITS PROTOCOL AND ITS ANNEXES, SHOULD CONTINUE TO APPLY TO THE HONG KONG SAR AFTER 30 JUNE 1997 IN ACCORDANCE WITH THE JOINT DECLARATION. TO ACHIEVE THIS RESULT, IT WILL BE NECESSARY FOR THE CPG IN SOME WAY TO INDICATE TO ALL PRESENT CONTRACTING PARTIES, AND ALL GOVERNMENTS WHICH MAY BECOME PARTIES BEFORE 1 JULY 1997, THAT ALL THE INTERNATIONAL RIGHTS AND OBLIGATIONS ARISING FROM

THE CONVENTION AND ANNEXES: TO THE EXTENT TO WHICH THEY APPLY TO HONG KONG, WILL BE ASSUMED BY THE CPG WITH EFFECT FROM 1 JULY 1997 AND APPLY TO THE HKSAR OF THE PRC. IT WILL FURTHER BE NECESSARY TO ENSURE, SO FAR AS POSSIBLE, THAT THOSE CONTRACTING PARTIES EITHER AGREE, OR AT LEAST ACQUIESCE. IN THE OPINION OF THE BRITISH SIDE, THE BEST METHOD FOR SECURING THIS OBJECTIVE WOULD BE AS DESCRIBED IN PARA 7 OF THE PAPER HANDED TO THE

CHINESE SIDE ON 15 MARCH 1989.'

DRAFT PAPER ENDS

WILSON

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