CONFIDENTIAL
HKK 040/24
RECEIVEL
LUISTRY
23 MAY
71
GRS 354
CONFIDENTIAL
FM FCO 211325Z MAY 85
TO IMMEDIATE HONG KONG
TELEGRAM NUMBER 716 OF 22 MAY
INFO IMMEDIATE PEKING
PERSONAL FOR GOVERNOR FROM GALSWORTHY
HONG KONG AND THE GATT
1.
DURING CONSIDERATION OF THE EXCO PAPER FIFOOT HAS POINTED OUT
THAT THE PROPOSAL THAT HONG KONG SHOULD HAVE A SEPARATE STATUS IN
THE GATT RAISES IN A MANNER WHICH IT IS DIFFICULT TO OBSCURE THE
DIFFERENCES BETWEEN THE WAY WHICH IN PRACTICE HONG KONG GOVERNS
ITS AFFAIRS AND ITS SOMEWHAT OLD FASHIONED CONSTITUTION. UNDER
GATT ART XXVI (5) (C), THE UK WOULD MAKE A DECLARATION THAT HONG
KONG POSSESSES QUOTE FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL
COMMERCIAL RELATIONS UNQUOTE. BUT ALTHOUGH IN PRACTICE IT ENJOYS
SUCH POWERS IT DOES NOT HAVE FORMAL CONSTITUTIONAL AUTHORITY IN
SUCH MATTERS. UNDER THE LETTERS PATENT IT HAS NO SELF GOVERNING
POWERS, NO MINISTERIAL SYSTEM AND NO REPRESENTATIVE LEGISLATURE.
THE GOVERNOR CAN ACT CONTRARY TO THE ADVICE OF THE EXECUTIVE
COUNCIL. THERE IS NOT EVEN AN INSTRUMENT OF ENTRUSTMENT TO THE
GOVERNOR ON EXTERNAL COMMERCIAL RELATIONS.
2. THERE IS CLEARLY NO PROSPECT OF CONSTITUTIONAL CHANGE
OCCURRING SUFFICIENTLY RAPIDLY IN HONG KONG TO HELP WITH OUR
IMMEDIATE PROBLEM. NOR DO WE THINK WE COULD APPROACH THE PROBLEM
BY ASSERTING A CONSTITUTIONAL CONVENTION IN HONG KONG THAT THE
GOVERNOR DOES NOT ACT CONTRARY TO THE ADVICE OF THE EXECUTIVE
COUNCIL AND THAT HMG DOES NOT INTERFERE IN EXTERNAL COMMERCIAL
RELATIONS. SUCH AN APPROACH WOULD BE TOO OBVIOUSLY CONTRARY TO
THE LETTERS PATENT.
3. SUBJECT TO YOUR VIEWS, WE BELIEVE THE BEST APPROACH WOULD BE
TO BUILD UP A CASE ON THE LONG ESTABLISHED POLICY OF MINISTERS TO
ALLOW FULL AUTONOMY TO HONG KONG IN THE RELEVANT FIELDS. THIS
COULD PERHAPS BE REINFORCED BY PROVIDING A FORMAL ENTRUSTMENT TO
THE
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CONFIDENTIAL