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Which bike?
Jeff, Grant and me (all 1981-2) have ours on the outside. Dwerbil is the only rider in here that has his on the inside, that I'm aware of. ...and gspd. It may be that different eras had them placed in opposite spots.
It makes sense from a aesthetics perspective to have them on the inside if you have a colour coded mudguard, but the design of the ones I have intuitively lends it to be attached on the outside. They are shaped to fit the outer mudguard.
Pictures from the UK I have show them on the outside also.
They go faster if they're on the outside.