Reference.....
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Reference paragraph 3 of Mr. Anderson's minute of 3 April.
2.
Although HMG are entirely responsible for Hong Kong's external affairs and internal administra- tion, the Colony has for some time been allowed a considerable degree of independence in her external trading activities. When in 1962/3 the United Kingdom became a party to the GATT Long Term Arrangement regarding International Trade in Cotton Textiles, it also accepted on behalf of Hong Kong, and the latter has frequently entered into "mutually acceptable arrangements" with other Governments under Article 4 of the LTA. (It should be noted that Article 4 provides for "Arrangements" and not for "Agreements".) We have known of Hong Kong's activities in this sphere but have not necessarily formally notified our "authority and consent" for them. It is not for me to say whether the fact that Hong Kong is a party to the LTA gives her the legal and constitutional right to enter into such Arrangements without HMG's "authority and consent", but I very much doubt if it does. And subject to legal advice it seems to me that whether or not Arrangements entered into by Hong Kong with the United States (or any other Government) are registered under Article 102 as presented (i.e. as between the United States and the territory concerned), HMG would still be responsible internationally on Hong Kong's behalf for such Agreements.
3.
From the point of view of convenience, it would clearly be preferable if we could continue the existing arrangements described in paragraphs 2 and 3 of Mr. Kiernik's letter of 22 November, 1968.
4.
It
As regards the Arrangement TIAS 5872 and the Agreement TIAS 6088, these appear to have been entered into without regard to the Secretary of State for the Colonies' circular Savingram of 28 September, 1956. However, this may be because Hong Kong may have assumed that since these negotia- tions were carried out under the terms of the LTA, the requirements of the Savingram did not apply. would certainly hardly be practicable for this Department to give detailed examination to every such Agreement or Arrangement concluded by Hong Kong at the time of its negotiations in order that HMG's "authority and consent" might formally be given; but we would see no objection to giving Hong Kong general authority (in the case of Arrangements entered into under the ITA) to assume that HMG's "authority and consent" would be forthcoming, provided that they kept us informed of what was going on, so that they could include the necessary reference to such "authority and consent" in the preamble to any such Arrangement when concluded.
17 April, 1969
(A. W. Gaminara) Hong Kong Department
I should perhaps add that, there could be no
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