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formally sought UK approval.
5.
While we have no difficulty with the content of the agreement (although the Commission have extracted greater Privileges from Hong Kong than we had believed possible), the UK position is somewhat complicated by our long standing concern as to the Commission's powers to enter into international agreements. On agreements of substance between the Community and a third country we maintain and should continue to do so that the Commission must obtain a Council
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- -
mandate to enter into negotiations followed by Council approval of the outcome. But we have been less concerned about agreements concerning the status of EC Offices overseas, leaving such 'administrative' issues to the Commission to sort out with the host Government. There have been over a hundred
such cases.
So
6. It is unfortunate that Hong Kong require our express approval to enter into the agreement, as we can no longer simply turn a blind eye. Yet having expanded so much effort over the last six years persuading the Commission to open an office in Hong Kong, it would be perverse to scupper it at the last minute. We could perhaps ask Hong Kong to suggest to the Commission that the agreement should be with the Communities instead, but the Commission would no doubt refuse.
And, in view of the hundred plus precedents, our position would then appear ridiculous. On balance, I consider it in our wider interests not to open this particular can of worms but rather to supply Hong Kong with the necessary authorisation.
REF:ASIA-PACIFIC/1609.HongKong
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