TNAG-2757-FCO40-3974-Hong-Kong-customs-arrangements-and-conventions-1993 — Page 47

Foreign & Commonwealth

Office

@

26 February 1993

Ms Rachel Hammerton

HM Customs and Excise

Customs Directorate Division 1B

New Kingsbeam House

22 Upper Ground

LONDON

SE1 9PJ

Dear Ms Hammerton,

CUSTOMS ARRANGEMENT WITH HONG KONG

1.

London SW1A 2AH

Telephone: 071-770 2653

Gerald Spain, whom I understand has since left CDD 1B wrote to my predecessor, Terry Furness, on 10 February seeking FCO views on the model Memorandum of Understanding proposed by HM Customs and Excise (HMC&E) and the draft Cooperative Arrangement proposed by the Hong Kong Customs and Excise Department.

2. As Mr Spain pointed out, the two drafts are very similar. of the two, both we and our legal advisers much prefer the Hong Kong draft because the language is adjusted to Hong Kong's needs and because of its title. The HMC&E draft would need a number of changes to reflect Hong Kong's status as a dependent territory eg the references to "states" would need to be changed.

3. The Hong Kong text is an understanding between departments; the HMC&E text is an understanding between governments. Neither would be governed by international law. We do not see any problem with having an understanding merely between departments in this case.

4.

Hong Kong has autonomy in customs matters post-1997 and therefore an arrangement between departments ought to be able to survive 1997. Furthermore there would be no need to consult the Chinese as the arrangement would not be a treaty.

5. I hope for the reasons given above you will be able to accept the Hong Kong draft. However, I note that from

Mr Spain's letter that HMC&E there are one or two differences which you may wish to take up with Hong Kong. We would find it helpful to be copied in on any correspondence that results.

Yours Sincerely

annadele Bouch

Annadele Bouch

Hong Kong Department

hammerton.ADM.JRB

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