TNAG-0508-FCO40-573-Construction-of-underground-railway-system-in-Hong-Kong-1974 — Page 190

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NOTHING TO BE WRITTEN IN THIS MARGIN

The Governor could thus not claim that to go to

competitive negotiation would have avoided the

political difficulty with this country.

6. He has the constitutional power to disregard

Executive Council's advice. But this power has to be

exercised very sparingly if Hong Kong is to remain

governable. For the UK to interfere through the

Governor, in Hong Kong' use of its own money, would

be a very serious step. The Governor was well aware

and his almost without success of this dilemma, and tried hard to avoid it. the

event he failed. But it may well be that no-one else

could have suospeded in his place,

7.

I am sending a copy of this minute to the

Secretary for Trade and Industry and to the

Chancellor of the Exchequer.

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