The informal authority given to Hong Kong to negotiate is referred to in a diplomatic note of 15 August 1990 from the FCO to the Swedish Embassy. A copy is enclosed. I am not certain (but am of course ready to be persuaded otherwise) that this authority can be read as an implementing authority of the type sought by Hong Kong: you may wish to compare for example the provisions in this respect of the General Entrustment of 12 September 1986 (copy also attached), which confines implementing authority to those ASAs which Hong Kong has been specifically authorised to sign.
What we might consider instead is whether additional informal authority could be given to Hong Kong to allow for provisional application of the arrangements. Such authority would not, in my view, be inconsistent with the provisions of JD 120 and 124, nor with those of the General Entrustment, and would constitute a useful post-1997 precedent for the SAR's dealings in this field.
May I please have your advice on the foregoing as a matter of some urgency? Hong Kong's next round of talks with the Scandinavians will take place early next week and they will need to know by then what options are open to them.
I am copying to Moragh Stewart here, to Simon Shelly in AMD and to Rod Bunten in HKD for any further views that they might have.
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