TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 133

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Constitutional Position and Practice

3. Responsibility for the conduct of Hong Kong's external relations rests with HMG;

this includes the conduct of commercial

relations. In practice over the years, without any formal devolution of authority,

Hong Kong has been left to conduct negotiations

and exchanges with third countries in matters primarily concerned with only the Colony's interests, keeping HMG informed of the progress and outcome of such exchanges. In matters involving HMG's interests the necessary action has been taken either by HMG or the Colony or

by both acting in conjunction after full consultation and agreement on the course to be pursued. Agreements with other countries

have been signed by Hong Kong representatives or by HM Representatives on Hong Kong's behalf and where necessary (i.e. agreements registrable with the United Nations) have indicated that they have been concluded with

the authority of HMG.

4. A special case (but consistent with the arrangements outlined above) is Hong Kong's membership of the Cotton Textiles Committee of the GATT. The GATT applies to Hong Kong by

virtue of the Colony's accession as a dependent territory; the Colony's representa- tives attend appropriate GATT meetings as part

of the UK delegation. Hong Kong is, however, a signatory of the Long-Term Arrangement on Cotton Textiles (L.T.A.) and, within the specific ground rules laid down in the L.T.A.,

has been left to conduct and conclude

negotiations with a number of importing countries without UK participation. Its representatives, although attending the Cotton Textiles Committee as members of the UK delegation, are free to speak for the Colony and to its interests in the Cotton Textiles

Committee, after prior consultation with UK representatives on the delegation.

/5.