It is argued that the formal rules of correspondence between local observation procedures and observables do not exhaust the entire physical content of generally covariant quantum field theory. This result is obtained by expressing the distinguishing features of the local kinematical structure of quantum field theory in the generally covariant context in terms of a translocal structure which carries the totality of the nonlocal kinematical informations in a local region. This gives rise to a duality principle at the dynamical level which emphasizes the significance of the underlying translocal structure for modelling a minimal algebra around a given point. We discuss the emergence of classical properties from this point of view.
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