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5. In theory a formal devolution of authority could be made to the Hong Kong Government, based on or extending the practical arrangements outlined above. An example is the recent devolution to the Bahamas Government (see Annex B), the extent of which is not so very different from existing practice as applied to Hong Kong. But while a formal devolution to Hong Kong might have presenta- tional advantages (e.g. in the eyes of Executive Council and the Textile Advisory Board) any such proposal would for the following reasons require very careful consideration :-
6.
(a) It is not usual for such authority to be devolved on
Colonial Governments at the stage of constitutional evolution reached by Hong Kong; in the past devolutions have been made to locally elected administrations that are heading for complete independence.
(b) There is a danger that the formal conferment of a
measure of independent authority might arouse China's susceptibilities the more so, perhaps, in view of the point made at (a) above.
(c) The Colony carries little weight in a negotiating
sense, has not the power of economic retaliation to command respect and must rely to some extent on UK backing; a quasi-independent status for Hong Kong might dispose some countries to feel that they could discount UK backing.
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It is relevant to mention here that some formal devolution may have to be made to Hong Kong in the event of British entry into the Common Market, particularly if the states in the Community were to give up their individual membership of GATT to make way for a single Community membership. This might involve the devolution of full commercial autonomy on Hong Kong (as in the case of Southern Rhodesia). Some very preliminary and not very conclusive thought has been given to this problem:
/ it may be
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