{
CONFIDENTIAL
-2-
United Kingdom accepted the LTA on behalf of Hong
Kong and, with the approval of Her Majesty's
Government, the Government of Hong Kong have
negotiated bilateral agreements for restraint of
trade in cotton goods with all the major importing
Moreover, the countries party to the
countries.
LTA are members of the Cotton Textiles Committee
of the General Agreement on Tariffs and Trade
(GATT) and Hong Kong's representatives attend
meetings of this Committee as members of the United
Kingdom Delegation. They have an opportunity to
present Hong Kong's views independently but in
practice direct conflict in the expression of views
is avoided. These arrangements reflect the fact
that Hong Kong, being a dependent territory, is not
a separate member of the GATT, and is represented
in the GATT by the United Kingdom Delegation.
5. It follows also from the constitutional position
that, in terms of international law, Her Majesty's
Government cannot abrogate final responsibility for
the Hong Kong Government's external relations.
However, as stated in my predecessor's saving despatch
No. 369 of 31 July, 1969, having regard to the
considerable number of trading arrangements and
agreements into which Hong Kong enters in terms of
the LTA I do not consider it necessary or practicable
for the terms of every such arrangement or agreement
to be scrutinised in London before it is concluded
and can be registered if necessary under Article 102 of the United Nations Charter, Brovided,
therefore, that you are satisfied that the conclusion
of any LTA arrangement does not jeopardise the
interests of Her Majesty's Government or commit Her
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