CONFIDENTIAL
The constitutional position, and the doctrine that flows from it, lays down that the power of final decision rests with HMG - as stated in paragraph 4 of the despatch to the Bahamas (Annex B). It does not of course follow that in any and every conflict of interest the UK interest should be regarded as paramount; equally there is no firm basis for asserting that Hong Kong's interest must always carry the day. Unfortunately no satisfactory criteria or guide rules can be formulated for deciding whose interest should be regarded as deserving paramount consideration in any situation; often in assessing the damage that a particular course of action might do to Hong Kong or UK interests political f actors must be taken into account and there is plenty of room for differing views on the strength and relevance of these,
Who should decide?
10.
G
Given that the power of final decision must rest with HMG the question arises at what level and by whom is a decision on paramountcy of interest to be taken where it has not been possible to resolve the conflict by agreement (bearing in mind that if and when an impasse has been reached a decision against the Hong Kong interest is tantamount to overruling the Governor)?
11. Within the Government, the Foreign and Commonwealth Secretary is responsible (to Parliament) for the administration and good government of Hong Kong. His is the ultimate responsibility to decide whether it is in Hong Kong's best interests (taking all other considerations, including political, into account) that the Colony should pursue a particular commercial policy or course of action. If the Governor is to be overruled and directed to pursue a course he has advised to be contrary to Hong Kong's interests, such direction is given by the Foreign and Commonwealth Secretary.
CONFIDENTIAL
12.
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