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MR. SOLOMON: As I stressed in my testimony, Senator, what we want to make sure is that our domestic laws enable us to deal with Hong Kong in the context of that substantial measure of autonomy that is embodied in the joint declaration and the basic law. We want to avoid a situation where our legal framework here would not enable us to deal with Hong Kong with that measure of autonomy. And Jamie, maybe you should add a bit more there.
MS. SELBY: Thank you, Senator McConnell. fairly technical comments.
SEN. MCCONNELL:
These will be basically
Could you pull the mike a little closer to you?
MS. SELBY: Thank you.
MR. SOLOMON: Don't be mistaken by that delicate presentation. She's got the law firmly under control.
MS. SELBY: Thank you.
As with any important policy, Senator, we would welcome a formal instrument demonstrating interbranch and bipartisan consensus. If we're able to agree on such legislation, it will show unmistakably to China and the UK that we intend to support the decisions they expressed in the joint declaration. to the people of Hong Kong the U.S. law will enable us to interact with Hong Kong in accordance with the high degree of autonomy which Hong Kong has been promised.
As a purely legal matter, we do not need, we think, broad new statutory authority but instead only a few specific clarifications and authorizations. Some of these are important, however. Most important, there are certain areas in which China and the United Kingdom receive very different treatment under our domestic law. Our laws reflect the fact that the UK has been a close friend and ally for more than a century, while our modern relationship with China is newer and contains more areas of disagreement.
Thus, for example, the UK receives most favored nation treatment under the statute that grants that treatment to most countries in the world, while China is subject to the more restrictive rules, including Jackson-Vanik. China is also subject by name to statutory sanctions imposed in the aftermath of Tiananmen. The United States at present recognizes the UK as exercising sovereignty over Hong Kong. As a result, Hong Kong is generally treated as part of the United Kingdom under U.S. law. Thus, for example, goods and technology can be exported to Hong Kong that could not be exported to the PRC.
After June 30, 1997, the United States will be recognizing the PRC as sovereign over Hong Kong. For purposes of U.S. law, all else being equal, Hong Kong would then be part of the PRC. Where statutes such as Jackson-Vanik and the China sanctions impose disabilities on countries, states, or on China, Hong Kong could become subject to these disabilities. To take the timely example of MFN, if China were to lose MFN, Hong Kong might well lose it as well under U.S. domestic law.
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