Chancellor of the Duchy of Lancaster

Qh 02476

Dear Mr Murray

Cabinet Office

70 Whitehall London SWI Telephone or ***** 233 8550

24 December 1975

cc: Mrunch

Mr Stewport

REUP

IN

RE

31 DEC1975

0.51

Good. I Du

Thank you for your letter of 11 November about Hong Kong

Constitutionally, the Foreign Secretary is responsible to Parliament for the Government in Hong Kong, and the Governor, as head of the Executive in Hong Kong, represents and is responsible to the Crown. The Crown possesses certain powers such as the right to dis- allow Hong Kong legislation and the right to legislate for the Colony by Order in Council. But in practice Hong Kong has to be governed by consent and there is a limit beyond which the Governor cannot impose policies unacceptable to public opinion there. We naturally seek to influence the Hong Kong Government's policies over a wide field, but we also have to accept that the colony's livelihood is vitally dependent on trade and the Hong Kong Government's policies have to take account of the best interests of the local population.

On the question of our responsibilities for the labour situation in Hong Kong, which the Textile, Clothing and Footwear Industries Committee raised with me, Jim Callaghan explained the position in the letter which he sent to you on 18 September.

31/12.

Yours sincerely

пр

Culick

pp HAROLD LEVER

Her Lever

Colpproved by and signed in his abfence)

Lionel Murray Esq OBE

w/39

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