CODE 18-77
Reference.....................................
5. If Mr Matthews is prepared to accept an argument by the promotors of this private Bill that all the business is Hong Kong business, I would be prepared to accept that the Governor may consent to the Bill. The issue of extraterritoriality in a case such as this is by no means cut and dried and whereas I am inclined, by nature, to take a cautious view, I would be prepared on such an issue to accept a different view by the Attorney General to whom it would fall to defend the constitutionality of the Bill if the matter were attacked. The fact that this is the kind of Bill which is subject to reservation under the Royal Instructions, does not I think primarily affect that issue. The banking authorities in Hong Kong are satisfied as to the propriety of the Bill, which is the main matter of concern for the Secretary of State. If the Hong Kong law officers are prepared to take a chance on an issue on the margins of extraterritoriality, I think we may be quided by them.
4 July 1988
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ef
Paul Fifoot
Legal Advisers K 199