TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 48

CONFIDENTIAL

HKK 040/24

RECEIVEL

LUISTRY

23 MAY

71

GRS 354

CONFIDENTIAL

FM FCO 211325Z MAY 85

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 716 OF 22 MAY

INFO IMMEDIATE PEKING

PERSONAL FOR GOVERNOR FROM GALSWORTHY

HONG KONG AND THE GATT

1.

DURING CONSIDERATION OF THE EXCO PAPER FIFOOT HAS POINTED OUT

THAT THE PROPOSAL THAT HONG KONG SHOULD HAVE A SEPARATE STATUS IN

THE GATT RAISES IN A MANNER WHICH IT IS DIFFICULT TO OBSCURE THE

DIFFERENCES BETWEEN THE WAY WHICH IN PRACTICE HONG KONG GOVERNS

ITS AFFAIRS AND ITS SOMEWHAT OLD FASHIONED CONSTITUTION. UNDER

GATT ART XXVI (5) (C), THE UK WOULD MAKE A DECLARATION THAT HONG

KONG POSSESSES QUOTE FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL

COMMERCIAL RELATIONS UNQUOTE. BUT ALTHOUGH IN PRACTICE IT ENJOYS

SUCH POWERS IT DOES NOT HAVE FORMAL CONSTITUTIONAL AUTHORITY IN

SUCH MATTERS. UNDER THE LETTERS PATENT IT HAS NO SELF GOVERNING

POWERS, NO MINISTERIAL SYSTEM AND NO REPRESENTATIVE LEGISLATURE.

THE GOVERNOR CAN ACT CONTRARY TO THE ADVICE OF THE EXECUTIVE

COUNCIL. THERE IS NOT EVEN AN INSTRUMENT OF ENTRUSTMENT TO THE

GOVERNOR ON EXTERNAL COMMERCIAL RELATIONS.

2. THERE IS CLEARLY NO PROSPECT OF CONSTITUTIONAL CHANGE

OCCURRING SUFFICIENTLY RAPIDLY IN HONG KONG TO HELP WITH OUR

IMMEDIATE PROBLEM. NOR DO WE THINK WE COULD APPROACH THE PROBLEM

BY ASSERTING A CONSTITUTIONAL CONVENTION IN HONG KONG THAT THE

GOVERNOR DOES NOT ACT CONTRARY TO THE ADVICE OF THE EXECUTIVE

COUNCIL AND THAT HMG DOES NOT INTERFERE IN EXTERNAL COMMERCIAL

RELATIONS. SUCH AN APPROACH WOULD BE TOO OBVIOUSLY CONTRARY TO

THE LETTERS PATENT.

3. SUBJECT TO YOUR VIEWS, WE BELIEVE THE BEST APPROACH WOULD BE

TO BUILD UP A CASE ON THE LONG ESTABLISHED POLICY OF MINISTERS TO

ALLOW FULL AUTONOMY TO HONG KONG IN THE RELEVANT FIELDS. THIS

COULD PERHAPS BE REINFORCED BY PROVIDING A FORMAL ENTRUSTMENT TO

THE

1

CONFIDENTIAL