RESTRICTED
WORLD TRADE WT/SPEC/29
18April 1996
ORGANIZATION(96-1404)
Original: English
WORKING PARTY ONTHE ACCESSION OFCHINA
Communication from China
Thefollowing communication, dated 27March 1996, hasbeenreceived from theChinese
Delegation withtherequest thatitbecirculated tomembers oftheWorking Party.
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1. China hasnointention ofusing unnecessary exchange measures tofrustrate tradeagreements.
China iscurrently accelerating thetransition from IMFArticle XIVtoArticle VIII. Inthisrespect,
China shares thesame objectives astheIMFandtheWTO.
2. TheChinese Delegation hastaken fullnoteoftheIMF'sconcern thattheexchange provisions
inthedraftprotocol giverisetoinconsistency withregard totherights andobligations ofFundmembers
andtheestablished practice fordealing withexchange systems ofFund members. China iskeento
avoid being caught inalegalconflict arising from different provisions ofdifferent legalinstruments
concerning thesameissue. TheChinese Delegation agrees totheIMFsuggestion thatthedraftprotocol
dropallreference toexchange measures under Fund jurisdiction.
3. China hasnointention ofbacking down from itscommitment withregard tothereform of
itsforeign exchange regime. TheChinese Government willasalways cooperate withallparties
concerned withaconstructive attitude, andhopes thattheIMFandtheWTO enter intoconsultations
withaviewtoseeking anappropriate solution.