TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 207

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CONFIDENTIAL

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FROM:

DATE:

5 JUNE 1985

A C GALSWORTHY, HKD

91

Dr Wilson

POYNT LACE Caway)

Private Secretary

LIKK 040/24

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INV

23 JUL 1985

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roxy S.; W. Hard's

PSLady

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Mr Fifoot, Legal Advisers Mr Darwin, Legal Advisers

Miss Wilmshurst, Legal

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Advisers

HONG KONG:

ESTABLISHMENT OF "FULL AUTONOMY" IN THE CONDUCT OF

EXTERNAL COMMERCIAL RELATIONS

PROBLEM

•

How to avoid legal challenge to a declaration by HMG for the purposes of the General Agreement on Tariffs and Trade (GATT), that Hong Kong possesses "full autonomy in the conduct of its external commercial relations and of the other matters provided for in" the

GATT.

RECOMMENDATION

2. I recommend that

(a) we consult the Law Officers on the constitutional propriety of

making such a statement on the basis of the practice that has grown up of allowing Hong Kong to enjoy considerable freedom in the conduct of its external commercial relations;

(b)

subject to the advice of the Law Officers on (a), we provide Hong Kong with a formal instrument of entrustment.

BACKGROUND AND ARGUMENT

3. In preparation for the first meeting of the Sino-British Joint Liaison Group (JLG) (in London, in July), we have been considering

CONFIDENTIAL