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political practicality, HMG could not reverse this practice; indeed they are prepared to reinforce it by an appropriate

entrustment. So long as that position persists Hong Kong

enjoys full autonomy in the relevant field. So far as the GATT is concerned, it is suggested that that would be a justifiable position to adopt and, subject to para 14 below, it could be defended even if challenged in the organs of the GATT on constitutional grounds. Again preliminary soundings of the Secretariat of the GATT have not shown any indication to question Hong Kong's credentials.

10. The second series of questions relate to the constitutional

relationship between the United Kingdom and Hong Kong, and the answers are relevant to the issue whether that relationship is such as renders it permissible to take the line proposed in

paragraph 9 above.

11.

The Constitution of Hong Kong consists of Letters Patent and Royal Instructions (for the purposes of this Memorandum it will

be sufficient to consult the consolidated versions up to

February 1977 and August 1977 respectively). There is a Governor, an Executive Council and a Legislative Council. There has been no development in Hong Kong of a ministerial system or devolution of powers to representatives of the local people with the Governor being required to act on local ministerial advice. Although the Governor is required to consult EXCO (which has an unofficial majority and, in practice, enjoys considerable influence) and in practice acts on its advice, the Royal Instructions authorise him to disregard its advice. In constitutional terms, the Executive of Hong Kong, ie the government, is the Governor there is no other source of executive power in the colony. EXCO is an advisory body and the senior office holders are heads of a secretariat or administrative departments responsible (subject

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