CONFIDENTIAL
Kingdom Delegation. They have an opportunity to present Hong Kong's views independently but in practice the expression of conflicting views by United Kingdom representatives and representatives of Hong Kong is avoided. These arrangements reflect the fact that Hong Kong, being a dependent territory, is not a separate member of the GATT, and is represented in the GATT by the United Kingdom Delegation.
4. It follows from the constitutional position
Conducts external relations that, in exercising any authority to set independently
the Government of Hong Kong act as agents of Her Majesty's Government and the rights which they thereby acquire and the obligations which they thereby accept are acquired and accepted on behalf of Her Majesty's Government. It would be Her Majesty's Government
who would be called to account for any default on the part of the Government of Hong Kong and Her Majesty's
Government alone could secure reparation on behalf of the Government of Hong Kong for any default by a third party.
However, as stated in my predecessor's saving despatch No.369 of 31 July, 1969, having regard to the considerable number of trading arrange- ments and agreements into which Hong Kong enters in terms of the LTA I do not consider it necessary or practicable for the terms of every such arrangement or agreement to be scrutinised in London before it is concluded and can be registered under Article 102 of the United Nations Charter. Provided, therefore,
that you are satisfied that the conclusion of any LTA arrangement does not jeopardise the interests of Her Majesty's Government or commit Her Majesty's Government to undertakings for which their prior agreement should, in your view, be obtained, I confirm that there will be no objection to the
inclusion in the preamble to such arrangements of
a statement to the effect that the Government of Hong Kong or administrative department concerned is acting with the authority and consent of Her Majesty's
Government.
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