6. It is important that it be accepted from the outset that the llong Kong Government must be free, in its management of external commercial relations matters delegated to it by H.M.G. in the U.K., to take a line on minor points which may not be in the best intereste of the U.K.
7. Management should be distinguished from execution. It would neither be desirable nor possible for the Hong Kong Government to provide its own overseas representation on the scale provided by H.M.G. in the U.. But in handling matters delegated to the Hong Kong Government auch British staff would be managed in the sense of being directed by the Hong Kong Government (through the F.C.0.).
Method
The Hong Kong Government would, as far as possible in advance of issues becoming the subject of dialogues with other countries, prepare policy briefs on all important areas of commercial" policy. These would be sent to the P.0.0. for examination and discussion with the Board of Trade. The long Kong Government would then be given instructions on whether delegation was to be permitted and, if so, what British interests should be safe-guarded in any dialogue with a third country. Where practicable, brisfa could be reviewed annually and discussed in London between Hong Kong and U.K. Government officials with a representative of the F.C.0. in the chair.