TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 141

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CONFIDENTIAL

assumption it would be possible to adopt a particular

interpretation of full autonomy

-

an interpretation which

-

relies on practice and a political imperative and to

make the declaration on that basis. As a matter of

practice Hong Kong enjoys full freedom to conduct external

commercial relations without interference from the United

So long

Kingdom; as a matter of political practicality, HMG could

not reverse this practice; indeed they are prepared

to reinforce it by an appropriate entrustment.

as that position persists Hong Kong enjoys full autonomy

in the lavant. So far as the GATT is concerned, it is

suggested that that would be a justifiable position to

adopt and, subject to para 14

it

below, could be

defended even if challenged in the organs of the GATT

on constitutional grounds.[Again preliminary soundings of the Secretariat of the GATT have not shown any indication to question Hong Kong's credentials.]

10. The second series of questions relati

to the constitutional relationship between the United

Kingdom and Hong Kong

and the answers are relevant to the issue whether that

relationship is such as renders it permissible to take the

line proposed in paragraph 9 above.

11. The Constitution of Hong Kong consists of Letters

Patent and Royal Instructions (for the purposes of this

Memorandum it will be sufficient to consult the

consolidated versions up to February 1977 and August 1977

respectively). There is a Governor, an Executive Council

There has been no development

and a Legislative Council.

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CONFIDENTIAL

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