6.

7.

(b) Full weight will be given to the relative extent of the

advantages or damage likely to accrue to either party, by following any of the alternative policies under consideration.

(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 so far as time permits will be consulted and its comments invited at all significant stages during the formulation and determina- tion of such policy.

(d) Where no agreement can be reached at official level 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 explain fully 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 may directly or indirectly affect Hong Kong's interests, the Hong Kong Government will be kept informed of HMG's intentions, and will be given the

opportunity for such consultations and representations as may be

necessary to ensure that its views and interests are fully taken

into account.

When HMG either

(a)

(b)

determines that Hong Kong's views and interests must be over-ridden in favour of a superior UK interest, or

is unable, for reasons of UK policy, adequately to defend Hong Kong against action by other countries which is damaging to Hong Kong's trading interests,

HMG and the Hong Kong Government will consider whether any

remedial measures are appropriate.

*

B

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