108.79
K/6/331/1
97
CONDUCT OF HONG KONG'S COMMERCIAL RELATIONS
Notes for discussions with Governor
24 November)
20
At the end of August there were discussions in this Office and in
the Board of Trade with Mr. Jordan, DDCI Hong Kong, about the
constitutional position with regard to Hong Kong's exercise of
responsibility in its commercial relations. This issue had been
brought to a head during negotiations about non-cotton textiles between
Hong Kong and Canada. The Governor, who believed that he had been
overruled during these negotiations "by the erratic use of HMG's
331/ (c) constitutional powers", had deputed Jordan to reach agreement with us
on the terms of a statement, which could be made to his Executive
Council and Textile Advisory Board defining the proper extent, in
practice to which HMG's admitted constitutional powers should be
exercised.
7
101
331/1/(e)
Such a statement was agreed, which the Governor acknowledged
would hold the position for the time being. But he warned that he
would have to ask for "further elucidation and elaboration,particularly
in connection with the resolution of conflicts of interest and the
source of and channels of authority".
This agreed formula for deciding on the delegation of authority
to the Hong Kong Government in commercial matters was applied almost
at once in negotiations between Hong Kong and Norway about non-cotton
textiles during October. Neither we nor the BOT, whose representative
negotiated in Oslo alongside the Hong Kong delegation, were satisfied
with the way in which Hong Kong interpreted the agreed statement:
we thought that they failed to consult us fully and we found them
unwilling that HMG should be associated with them to the degree we
thought proper to the occasion. Hong Kong was at least as
dissatisfied: they thought that our support of them during, and
indeed after, the negotiations was so intrusive as to reflect on their
/authority
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