TNAG-1402-FCO40-1874-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 215

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the Agreement on the future lays down clearly that, after 1997, Hong Kong "shall decide its economic and trade policies on its own" (Annex I, Section VI). The Chinese should therefore have no grounds for objecting to us making arrangements to

ensure that similar autonomy can be proven now. Chinese suspicions could however be inflated if they heard about the issuing of an entrustment after the event, either through a leak or because we had to make public reference to the new document. If it is agreed that an entrustment should be issued, I think we should tell the Chinese in advance what we propose to do and

why. This could be done in the Joint Liaison Group which will have Hong Kong's relations with the GATT as one of its first

subjects.

3.

The Legal Advisers take the view that we must clear our lines with the Law Officers. This is specialist advice and I

in consulting the Law Officers, I should do so in the context of

do not wish to dissent. But,

think it is important that we explaining what we intend, and seeking their concurrence rather than of simply asking for advice on a constitutional point.

must avoid getting hamstrung by constitutional arguments when faced with a problem requiring a pragmatic solution.

sofu

tion.

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گا

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cc: Mr Fifoot

Mr Darwin

Miss Wilmshurst

HKD

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D C Wilson