TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 12

CONFIDENTIAL

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SUBSEQUENTLY OBJECT (AND THERE ARE NO GROUNDS FOR OBJECTION,

GIVEN THAT THE TERMS OF THE ENTRUSTMENT FALL WELL WITHIN THOSE OF

THE AGREEMENT) WE CONSIDER IT UNDESIRABLE TO GIVE THE CHINESE,

EVEN BY IMPLICATION, A RIGHT TO COMMENT ON A BRITISH INTERNAL

ADMINISTRATIVE PROCEDURE. ON BALANCE THEREFORE WE BELIEVE THAT

THE ENTRUSTMENT SHOULD BE ISSUED BEFORE THE MEETING. THE TERMS

OF THE DRAFT HAVE BEEN DELIBERATELY CHOSEN TO MAKE CLEAR THAT WE

ARE SIMPLY FORMALISING A LONG-STANDING POLICY RATHER THAN MAKING

A NEW DEPARTURE. WE SHALL UNDERLINE THIS POINT WHEN INFORMING

THE CHINESE AND SHALL GENERALLY PRESENT OUR ACTION AS A TECHNICAL

REQUIREMENT FLOWING FROM THE PROPOSALS IN THE GATT PAPER: HENCE

THE VERY RECENT ISSUE OF THE ENTRUSTMENT. WE SHALL ALSO OF

COURSE UNDERLINE THAT THE ENTRUSTMENT FALLS SQUARELY WITHIN THE

TERMS OF THE AGREEMENT. IF THE CHINESE ASK TO SEE THE

ENTRUSTMENT, WE INTEND TO SHOW IT TO THEM.

3.

THERE IS ONE OTHER POINT WHICH WE SHOULD LIKE TO DRAW TO YOUR

ATTENTION. THE ENTRUSTMENT DEPARTS FROM SIMILAR ENTRUSTMENTS

ISSUED IN THE PAST TO GOVERNORS OF BRITISH DEPENDENT TERRITORIES

(SEE DSP VOL 66 ANNEXES 5 AND 6) IN THAT IT DOES NOT RECORD THAT

HMG RETAINS ULTIMATE RESPONSIBILITY FOR HONG KONG'S EXTERNAL

AFFAIRS. TO DO SO MIGHT DETRACT FROM OUR PROPOSED DECLARATIONS

TO THE GATT AND TO THE CCC THAT HONG KONG POSSESSES FULL

AUTONOMY' IN THE FIELD CONCERNED. WE HAVE THUS RECORDED THE

CONTINUING CONSTITUTIONAL RELATIONSHIP ONLY IN A SECOND,

CONFIDENTIAL DESPATCH (SEE PARA 1(A) ABOVE) WHICH WOULD NEXT WORD

UNDERLINED NOT BE MADE PUBLIC. THE ENTRUSTMENT ITSELF WOULD

CONSTITUTE THE GOVERNOR'S CREDENTIALS AND POWERS IN THE FIELD

PRESCRIBED AND COULD, COMMENCE UNDERLINING IF NECESSARY END

UNDERLINING, BE SHOWN TO THIRD PARTIES (IN ADDITION TO THE CHINESE), EG THE GATT, THE CCC OR COUNTRIES WHICH WISHED TO ENTER

INTO TRADE AGREEMENTS WITH HONG KONG.

3.

GRATEFUL FOR COMMENTS DESKBY 150830Z.

-

HOWE LIMITED

HKD

COPIES 70

FED

MR FIFOOT

LEGAL

ADVISERS

ECD (E)

MR

PRYOR

2

ITAI

не

CONFIDENTIAL