TNAG-2794-FCO40-4034-Relations-between-Hong-Kong-and-Taiwan-1993 — Page 151

HKC 02075

RECEIVED IN REGISTRY

45

DESK OFFICER

INDEX

REGISTRY

PA

Action Taken

dti

the department for Enterprise

Mrs S E Hogwood

ESED

Foreign and Commonwealth Office

King Charles Street

London SW1A 2AH

Direct line 071 215 6119

Our ref

Your ref

Date 4 February 1993

معام

14

Department of Trade and Industry

Ashdown House

123 Victoria Street

London SW1E 6RB

Enquiries

071-215 5000

Telex 8813148 DIHQ G

Fax 071-828 3258

Pen Sue,

MONTREAL PROTOCOL:

1

TAIWAN

Thank you for your letter of 22 January. You asked for clarification of the points made on page 2 of my letter of 14 January regarding the action which the United Kingdom could take to ensure Taiwan's compliance with the provisions of the Montreal Protocol.

2

The key point is that the adoption of the option (a) interpretation of the Protocol, while expedient, does not have the effect of creating rights or obligations as between Taiwan, on the one hand, and other parties to the Protocol on the other hand. At the same time, once Taiwan becomes a Contracting Party to the GATT it will benefit from GATT rights to non-discriminatory treatment by the European Community and other Contracting Parties. In circumstances where Taiwan were not to bring its policies on CFCs into conformity with requirements of the Protocol, it would be open to other members of the Protocol to put in place the trade measures envisaged by the Protocol. Such action would be outside the terms of the Protocol (following the option (a) interpretation). It would, however, raise the question of Taiwan's position in respect of its GATT rights. It might be argued by Taiwan that the imposition of such trade measures was a denial of its right to MFM treatment; the point being that in GATT terms such trade measures would appear to be discriminatory.

3 To be defensible in GATT, the trade measures taken by the EC would need to be covered by one of the exceptions listed in GATT Article XX. It would also need to meet the two tests set out in the chapeau to that Article.

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