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For many
run contrary to the strongly held feelings of those local people
who serve on the Executive and Legislative Councils.
years now for instance we have not interfered in the process
of budget making. Nor, as a general rule, do we issue orders
to the Governor.
13. It will be essential, however, to reserve our ability, in
the last resort, to veto any transaction the Hong Kong
Government proposes to enter into within the terms of the
delegation of authority;
and there may exceptionally be
incidents where even an offer of independent negotiations
could so seriously prejudice our international trading interests
that we should need to veto that also. Moreover, we are advised
that, in exercising any such authority, the Hong Kong Government
would be acting as our, so to speak, agents, and the right which
they thereby acquired and the obligations which they thereby
accepted would be acquired and accepted on our behalf. It
would be H.M.G. who would be called to account for any default
on the part of the Hong Kong Government and we alone could
secure reparation on behalf of the Hong Kong Government for any
default by a third party.
14. Apart from the international aspects, such a delegation
of authority would have to be defensible to the U.K. domestic
textile industry. As regards quantitative restrictions we would
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