TNAG-0241-FCO40-277-Agreements-under-GATT-long-term-arrangements-for-exporting-o-1970 — Page 64

CONFIDENTIAL

registrable agreements and to impress on the United

States Consul-General in particular that they are not

to be so regarded. The following phraseology

appearing in the 1964 and 1966 arrangements gave the

United States State Department adequate reason to

submit them for registration as treaties. If such

wording had not appeared in them we should in all

probability have declined on legal grounds to agree

to their registration.

Memorandum of Understanding of 11 November, 1964.

A Memorandum of Understanding is usually regarded

by us as a form of instrument which, if carefully

worded, does not constitute a registrable agreement.

However, it could be argued that the obligation was

conferred in this instance by the use of the following

wording:

(a) "the restraint levels which the Hong

Kong and United States Governments have

agreed will apply...... " (first paragraph).

"It is agreed by the Hong Kong and United

States Governments (paragraph 2).

(b)

(c)

"This Memorandum sets out all the main

points of agreement between the Hong Kong

and United States Government

(paragraph 3).

Exchange of Notes of 26 August, 1966 between the United States Consul-General and the Director of Commerce and Industry.

This Exchange was worded in the form of a proposal

and acceptance constituting a registrable agreement.

If registration were to be avoided, it should have been

cast as, for example, a Memorandum of Understanding or

on file

file

CONFIDENTIAL

NOTHING TO BE WRITTEN IN THIS MARGIN