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general rule of international law is that only States and international organisations can conclude international agreements. However, there have certainly been instances in the past (and there are instances at present) where the UK Government have delegated to the Government of a Dependent Territory authority to conclude local commercial agreements or arrangements. It is however always open to the other Contracting State to make enquiries of us where such a delegation of authority has been given. The problem is that, in the final analysis, international responsibility in respect of any violation of such an agreement rests with the UK Government. In the context of any new arrangements for Hong Kong, this question of international responsibility for the consequences of violation of an agreement concluded by Hong Kong under delegated authority (whether from London or Peking or a combination of both) would loom large.
6.
In short, it will not be at all easy to get international acceptance for very extensive independent activity by Hong Kong in the international field. The problem will involve primarily Hong Kong's position in multilateral organisations, since it may be easier to get it accepted in practice that Hong Kong, in its new status, will be entitled to exercise maximum autonomy in the conclusion of bilateral commercial agreements.
7. I may say at this stage that I anticipate particular difficulty in the context of Hong Kong's position in ICAO, membership of which is, so far as I can immediately judge, confined to independent States.
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31 August 1983
Dan Smeer
Ian Sinclair Legal Adviser
CC
PS/PUS
Mr Giffard
Mr Thomson (FED)
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