6.

7.

8.

9.

(c)

Where it is proposed that any new British international commercial policy or modification of such policy should be followed by Hong Kong, the Hong Kong Government will be consulted and its comments invited from the earliest practicable stage and thereafter during the formulation and determination of such policy.

(a) Where no agreement can be reached at official level on

policy issues of substance, and it is consequently being

proposed that a policy with which the Hong Kong Government disagrees should be followed by Hong Kong,

the views and advice of that Government, in its own

words if it so wishes, should be placed before the

Ministers concerned.

(e)

In the course of the consultations, HMG will indicate

to the Hong Kong Government the reasons for adopting the policy it proposes.

In matters of HMG's external commercial relations, where it

is proposed to follow policies which so far can be foreseen, may directly or indirectly affect Hong Kong interests, HMG will, so far as is practicable, keep the Hong Kong Government informed of their intentions and will give the Hong Kong Government opportunity for such consultations and representations as may be necessary to ensure that its views

and interests are fully taken into account.

In the course of any commercial negotiations between the

Hong Kong Government and a third party, any UK representa- tives participating will bear in mind the need to maintain the authority which in practice is vested in Hong Kong for

the conduct of the negotiations.

HMG's decisions on all matters in which agreement between

HMG and the Hong Kong Government is required will continue to be conveyed to the Hong Kong Government by the FCO.

The procedures for such consultation as is required between HMG and the Hong Kong Government on matters of external

commercial relations will be reviewed from time to time.

ENDS

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