CONFIDENTI AL
-2-
MEMBERS OF THE COTTON TEXTILES COMMITTEE OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND HONG KONG'S REPRESENTATIVES ATTEND MEETINGS OF THIS COMMITTER AS MEMBERS OF THE UNITED KINGDOM DELE-
CATION. THEY HAVE AN OPPORTUNITY TO PRESENT HONG KONG'S VIEWS
INDEPENDENTLY BUT IN PRACTICE THE EXPRESSION OF CONFLICTING VIEWS
BY UNITED KINGDOM REPRESENTATIVES AND REPRESENTATIVES OF HONG KONG
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. 4. IT FOLLOWS ALSO FROM THE CONSTITUTIONAL POSITION THAT, IN EXERCIS ING ANY AUTHORITY TO CONDUCT EXTERNAL RELATIONS THE GOVERNMENT OF HOB KONG ACT AS AGENTS OF HER MAJESTY'S GOVERNMENT AND THE RIGHTS WHICH
THEY THEREBY ACQUIRE AND THE OBLIGATIONS WHICH THEY THEREBY ACCEPT
ARE ACQUIRED AND ACCEPTED ON BEHALF OF HER MAJESTY'S GOVERNMENT. IT WOULD BE HER MAJESTY'S GOVERNMENT WHO WOULD BE CALLED TO ACCOUNT FOR
ANY DEFAULT ON THE PART OF THE GOVERNMENT OF HONG KONG AND HER
MAJESTY'S GOVERNMENT ALONE COULD SECURE REPARATION ON BEHALF OF THE
GOVERNMENT OF HONG FOR ANY DEFAULT BY A THIRD PARTY. 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 132 OF
THE UNITED NATIONS CHARTER. PROVIDED, 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
MAJESTY'S GOVERNMENT TO UNDERTAKINGS FOR WHICH THEIR PRIOR AGREEMENT
SHOULD, IN YOUR VIEW, BE OBTAINED, I CONFIRM THAT THERE WILL BE NO OBJECTION TO THE INCLUSION IN THE PREAMBLE TO SUCH ARRANGEMENTS OF
A STATEMENT TO THE EFFECT THAT THE GOVERNMENT OF HONG KONG OR
ADMINISTRATIVE DEPARTMENT CONCERNED IS ACTING WITH THE AUTHORITY AND.
CONSENT OF HER MAJESTY'S GOVERNMENT.
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5. TURNING NOW TO NON-COTTON TEXTILES, IT IS NECESSARY TO DEVISE
CONFIDENTIAL
/ ARRANGEMENTS