CONFIDENTIAL
BACKGROUND
Although constitutional responsibility rests with
Her Majesty's Government, in practice the Colony conducts
its own commercial relations over a wide field where its
own interests are primarily concerned.
2, Where issues ol' international commercial policy are
concerned involving British interests, Hong Kong has
exercised a similar responsibility in full consultation
and association witn us. There are clearly occasions
when it is appropriate or necessary that we should take
the lead in representing Hong Kong's interests (e.g. in
international organisations such as GATT); in such cases
Hong Kong officials take part in the proceedings as
members of the United Kingdom delegation. It is of course
important that at all stages there should be the fullest
exchange of information and consultation on these major
policy issues.
The
3. In the last two years there has been some conflict
of interest, particularly in the field of international
textile policy where Hong Kong's interests as a major
exporter differ from ours as a major importer.
Governor is concerned to ensure that, if any such conflict
can only be resolved by Hong Kong yielding to a course
of action which he considers to be not in the Colony's
best interests, the Colony's case should be put before
the Secretary of State and that any necessary decision should be taken here at that appropriate (Ministerial) level.
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CONFIDENTIAL
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