NOTHING TO BE Written IN THIS MARGIN

CONFIDENTIAL

letters placing on record the understandings

reached by the two Governments.

44.

The advice given in paragraph 3 above can,

of course, only be applied if the other party

agrees in principle to a non-registerable

arrangement.

If an international agreement

is required, then the device of an Understanding

should not be used at all. In such case, an

Exchange of Notes of the kind concluded in 1966

would be appropriate. It would be desirable

that your Note should state that the Government

of Hong Kong was acting "with the authority and

consent of the Government of the United Kingdom

of Great Britain and Northern Ireland". In

this way, we should avoid the necessity of

sending the United Nations ex post facto

confirmation that the obligations imposed by

the agreement were accepted by the United

Kingdom.

3

CONFIDENTIAL

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