CONFIDENTIAL
R
R+ BY
7/10
Despò
1 October, 1970.
ท
)
心
民
(HKK 6/18)
१५)
99
es
(83)
I wrote to you on 17 September about the proposed delegation of authority to Hong Kong in matters of overseas trade. Since then we have been looking into the proposals made by Tugene Melville in his letter to Laird of 9 September (copied to both Lum and Sunnett) We here think that Helville has made a good case for reconsidering the views set out in PCO telegram to UKMIS Geneva No. 384 of 2 September. Se certainly endorse his view that Hong Kong's special position makes it all the more important to proceed as far as possible by consent with the local population, including the leaders of industry and commerce, in the external trade field. We have considered the political implica- tions of giving Hong Kong separate representation in the CTC and in the new Working Party on Textiles, if it is set up, and like Melville and Jones, we are not convinced that there would be opposition to this from Hong Kong's trading partners, Nor do we think that the Chinese Peoples
Chinese Peoples' Dovernment would make an issue of the matter. The fact that Hong Kong is already a member in its own right of both the Asian Development Bank and also the Asian Productivity Organisation has been ignored by China.
2. In short, we believe that if we are to avoid serious trouble in Hong Kong we should explore every possibility of permitting the Hong Kong authorities to look after their own affairs, We cannot of course, alter the basic constutional position. That is fully accepted and understood by all responsible opinion in the Colony. This is fortunate because in any delegation of authority we have no alternative bat to include some such phrase as the Governor' "It follows from the constitutional position that R.H.G. cannot abrogate final responsibility for the Hong Kong Dovernment's 66 external relations", (paragraph 3(3) of his telegram No. 525 of
10 August). Ecreover we intend to make it quite clear that the Hong Kong Government will be required to keep H.M.G. informed about prospective and current negotiations of any kind with other countries.
3. It seems to us that the realities of the situation, described so well by Melville, leave us with a choice of only two courses - (1) to continue (with all the difficulties of which we are only too well aware) to attempt to restrain Hong Kong from taking action which the responsible and consitutional authorities in the Colony consider to be in the best interest of Hong Kong,
*. Hughes, Esq., CB,
Board of Trade,
1, Victoria Street,
6.1.1.
CONFIDEN
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