HKK 6/18
CONFIDENTIAL
Domestic Item No.9
NOTE FOR DISCUSSION WITH SIR DAVID TRENCH
GOVERNOR OF HONG KONG
24 November, 1969
Conduct of Hong Kong's Commercial Relations
In August there were discussions with Hong Kong representa- tives about the constitutional position with regard to Hong Kong's
exercise of responsibility for the conduct of its commercial
relations. This issue arose in connection with impending negotiations between Hong Kong and Canada over arrangements for
the restraint of Hong Kong exports of non-cotton textiles. For reasons of broad policy, we sought to intervene in the conduct of the Canadian negotiations, to delay their timing and influence
their outcome. Hong Kong, faced with the prospect of arbitrary and damaging Canadian action against its trade, pressed for their early conclusion in a manner that would safeguard the Colony's trading interests. The Governor, who considered that he had been overruled in this matter "by the erratic use of HMG's constitutional powers" (and above all without specific Ministerial direction)
asked for a statement defining the extent to which in practice HMG's admitted constitutional powers should be exercised for
communication to his Executive Council and Textile Advisory Board which were questioning HMG's right to subordinate Hong Kong's interests in this way.
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2. A statement was agreed (see Annex A), 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".
CONFIDENTIAL
/Constitutional
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