(KK 6/18)
CONFIDENTALL
Note No.6
·Despo
小
1/10
B
1 October, 1970.
I wrote to you on 17 September about the proposed delegation of authority to Hong Kong in matters of overseas trado. Since thon we have been looking into the proposals made by Eugene Wolville in his letter to Laird of 9 September (copied to both Lam and Sunnett). We here think that Helville haa made a good case for reconsidering the views set out in MCCO telegram to UKMIS Ceneva tio. 384 or 2 September. We certainly endorse his view that Hong Kong's special ponition makes it all the more importent to proceed as far as possible by consent with the local population, including the leaders of industry and commerce, in the external trade field. Wo have considered the political iünlica- tions of giving Hong Kong separate representation in the CTC and in the now Working Party on Textiles, if it is set up, and like Melville and Jones, we are not convinced that there would be opposition to this from Hong Kong's trading partners. Nor do wo think that the Chinese Peoples' Government would make an issue of the matter. The fact that Hong Kong is already a member in its own right of both the Asian Development Bank and also the Asian Productivity Organisation has been ignored by China.
2. In short, wo believe that if we are to avoid aorious trouble in Hong Kong we should explore every possibility of permitting the Hong Kong authorities to look after their own affairs. Te cannot of course, alter the basic constitutional position. That is fully accepted and understood by all responsible opinion in the Colony. This is fortunate because in any delegation of authority we have no alternative but to include some such phrase ao the Governor's "It follows from the constitutional position that ... connot abrogate final respongibility for the Hong Kong Government'o external relations", (paragraph 3(3) or his telegram No. 525 of 10 August). Moreover we intend to make it quite clear that the Hong Kong Government will be required to keep H.H.G. informed about prospective and current negotiations of any kind with othor countries.
3. It seems to us that the realities of the situation, described so woll by Melville, leavo us with a choice of only two courses - (1) to continue (with all the difficulties of which wo are only too well aware) to attempt to restrain Hong Kong from taking action which the responsible and consitutional authoritico in the Colony consider to be in the best interest of Hong Kong,
F. Hughes, Esq., CB,
Board of Trade,
1, Victoria Street,
8.1.1.
SIDENTIAL
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