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6.
Kong as much autonomy to run its own affairs before 1997
as is politically and constitutionally possible and in
keeping with the Joint Declaration.
The agreement will constitute a legally binding international
agreement, for which, as regards Hong Kong, the United Kingdom is
ultimately responsible. In accordance with our usual practice and as the responsible metropolitan power we will have to register the
agreement under Article 102 of the UN Charter. The Hong Kong and
Japanese Governments are aware of this.
7.
We must also consider what if anything we should say to the
Chinese Government. As the proposed agreement would only promote funding for one year at a time (subject to annual extensions) there
are at this stage no implications for the post 1997 period. It is
also very unlikely that any of the equipment purchased in the first
year of the agreement would still be in operation by 1997 (so the
question of transfer of responsibility for it to the Chinese does
not immediately arise). I have therefore concluded that we are not
obliged to consult the Chinese in advance of the agreement, although
I think it would be prudent as a matter of courtesy, to inform them of it, giving full details, shortly before the agreement is signed. Our Embassy in Peking and Hong Kong agree. A speaking note for use by the Embassy for this purpose is attached. The Chinese may ask to see the entrustment, in which case there would be no objection to
showing them a copy.
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