CONFIDENTAL,
ARIEL HO. 12
VISIT OF MINISTER OF SEAT) FOR COZIONI ALTI AFFAIRS
TO HOM KO
OCTOBER 1967
Hong Kong and The Anton Davolement Fonk
Hong Kong has for como timo boon considering whether or not to apply for membership of the Asian Dovalopmont Bank. As a dopondont territory it would be nocossary for hor application to be presented by H.M.Q., who would also be required to accept ccntingent liability for Hong Kong's obligations; unless or until Heng Kong should borrow from the Bank this would amount to responsibility for any unpaid portion of ' her subscription and the maintenance of the subscription's valus. 2. Our attitudo so far has boon that, in opito of the fact that tho economic advantages of momborship appear to bo small, it would bo politically advantageous for llong Kong to join; we have told long Kens, howovor, that we would leave the decision to her. After somɔ considoration Hong Kong has now dooídod in favour of joining tho Bank and has engaged in proliminary discussions rogarding the torms on which sho might bocono a
mombor.
3.
It has buon surgosted that thoro would be advantages both for Hong Kong and the Bank in having Hong Kong's application approvod boforo tho first annual mooting of the Bank in April 1968. Difficulties havo, hovovar, recently come to light in London over our logal position rogarling tho obligations which it would be necconery for H.M.G. to acoumo in rospoot ' of Hong Kong. Those may take some timɔ to rosolvo and this hỏa boon
explained to Hr. Cowporthwaite, tho Financial Socretary of Hong Kong.
If, as may be the cano, II,.G. has to take special pozorn by legislation,
thoro may be a fairly long dolay.
4.
Should it not prove practicablo for Hong Kong to join the Bonk in timo to attond the Annual Concral octing as a mombor it trould probably
CONFID IITTAL
/bo