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Mr. E.0. Laird
(Hong Kong Dept.)
Mr. Rushford has been otherwise engaged most of today and I will, therefore, deal with this for him. But, if time permits, I will try to pass this minute through him.
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It would be theoretically possible to delegate to the Hong Kong Government full authority to conduct their own international commercial relations. In exercising this authority they would, of course, be acting as, so to speak, agents of H.M.G. in the U.K. and the rights which they thereby acquired and the obligations which they thereby accepted would be acquired and accepted on our behalf. It is we who would be called to account for any default on their part and we alone could secure reparation on their behalf for any default by the other party.
3. There have been numerous precedents for an "entrustment" of this sort to dependent territories. The examples that immediately come to mind are the pre-Federation entrustment to Southern Rhodesia, the entrustment to the Federation of Rhodesia and Nyasaland, the entrustment to the West Indies Federation, the entrustment to the State of Singapore and the entrust- ment to Malta. I think that you will find that in all these cases the instrument of the entrustment required the territory concerned to keep the United Kingdom Government fully in the picture and reserved our ability in the last resort, to veto the proposed transaction.
4.
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But all these territories were territories at an advanced stage of self-government where the local Government, over a wide field, was wholly responsible to an elected Legislature and largely independent of United Kingdom control (leaving aside exceptional last- resort powers). Hong Kong is in a completely different position. It is not correct to say that "the Hong Kong Government is already in many respects virtually self-governing, certainly in internal affairs". The Executive Government in Hong Kong is an official government and is legally subject to our control in everything that it does. So far as I know it would be totally unprecedented to make an entrustment of the sort that I have described to a government of this kind. But the fact that it is unprecedented is not in itself Tatal. It seems to me that the position we should be creating would be so anomalous that we ought to think long and hard about it. The effect of the entrustment, if it really meant anything, would be that we should be setting up the Governor, within the field concerned, as an independent potentate accountable neither to any- body in Hong Kong nor to anybody here, Putting the point another way, it would be very difficult to reconcile the basic proposition of the entrustment
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