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DSR 11C
be used to require resources of HMG in the UK to be used
to discharge the Crown's debts in respect of Hong Kong.
Nevertheless if the resources falling within the
Crown's control in right of Hong Kong were to become
exhausted the Crown's debts would still subsist, even
though it would have no legislative powers under the
royal prerogative to provide for their satisfaction.
4.
Proceedings in the UK courts to recover such debts
could be blocked by a certificate from a Secretary of
State, given under S.40(3) of the Crown Proceedings Act
1947, to the effect that the alleged liability arose
otherwise than in respect of Her Majesty's Government in
the United Kingdom. But even if such a course was
politically acceptable it would not dispose of our legal
difficulties. If, for example, any debts were owed to
foreign nationals or under treaties, and were
dishonoured, the UK could incur international legal
obligations to pay compensation.
5.
It is obviously important to get the legal position
clear. But in considering HMG's position, I do not
believe that the political aspect can in practice be left
aside (para 2 of your letter). The position would remain
that obligations arising from Hong Kong would rest with
the Crown. The Government of Hong Kong ceased to be
effective, there would be no other authority than HMG
hommes
which could undertake these obligations and politically
be
it would impracticable for Ministers to try to evade
them.
Some
Obviously each item of any claim on the Hong Kong
Government would have to be carefully considered.
might be found to be unreasonable or legitimately
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