ENG-1986 — Page 63

IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

The Joint Liaison Group

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The Sino-British Joint Liaison Group (JLG) was established in accordance with the provisions of Annex II to the Joint Declaration. Its functions are to conduct consultations on the implementation of the Joint Declaration, to discuss matters relating to the smooth transfer of government in 1997, and to exchange information and conduct consultations on such subjects as may be agreed on by the two sides. As the JLG is an organ for liaison, and not an organ of power, it plays no part in the administration of Hong Kong.

The JLG comprises a senior representative and four other members on each side. Supporting staff and experts also attend meetings as appropriate. It meets in Peking, London and Hong Kong at least once each year. The first JLG meeting was held in London in July 1985, the second in Peking in November 1985, the third in Hong Kong in March 1986 and the fourth in London in July 1986. The last meeting, the fifth, was held in late November 1986 in Peking. The JLG will continue to meet in these three locations until the year 2000 and from July 1988 will have its principal base in Hong Kong.

Since its establishment, the JLG has made significant contributions towards the implementation of the Joint Declaration. Its meetings are conducted in a friendly and co-operative atmosphere. A good working relationship has been established and mutual trust between the two sides is growing steadily. Positive results have been achieved in a number of areas of major importance for the future of Hong Kong.

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Hong Kong and the General Agreement on Tariffs and Trade Annex II to the Joint Declaration refers specifically to the need for the JLG to consider the maintenance of Hong Kong's participation in the General Agreement on Tariffs and Trade (GATT) and the Multi-Fibre Arrangement (MFA). Discussion of Hong Kong's future participation in these important trade agreements was successfully concluded at the third meeting of the JLG where it was agreed that Hong Kong should become a contracting party to the GATT and retain such a status after 1997. To secure this objective, the United Kingdom government on April 23, 1986 made a declaration to the Director-General of the GATT under GATT article XXVI(5)c stating that, in accordance with the terms of that article, Hong Kong would with effect from that date be deemed to be a contracting party. On the same day the Government of the People's Republic of China made a parallel declaration stating that Hong Kong, as a Special Administrative Region of China, would continue to meet the criteria necessary for it to retain its status as a contracting party after 1997, in accordance with article XXVI(5)c. Hong Kong thus became the 91st contracting party to the GATT and in this new capacity reaffirmed its adherence to the MFA. These events were welcomed by many of Hong Kong's major trading partners.

As a result of this new status, it was no longer appropriate for Hong Kong to participate in the GATT as part of the United Kingdom diplomatic mission in Geneva. Hong Kong's permanent representative to the GATT is now listed separately from the UK Mission, and his office, in accordance with the terms used in the Joint Declaration for such missions, has been retitled the 'Hong Kong Economic and Trade Office'.

Identity Cards and Travel Documents

Agreement was confirmed at the third JLG meeting that British National (Overseas) passports will carry an endorsement to the effect that the holder of the passport has a Hong Kong permanent identity card which states that the holder has the right of abode in Hong Kong - an endorsement which is crucial to the international acceptability of the passport. The new British National (Overseas) passports will be introduced from July 1, 1987.