HKK102/7
RECEIVED IN REGISTRY
- 1 APR 1986
DESK OFFICER
INDEX
PS/Minister
RESTRICTED
Action Taken
AJB 1/4
pa ADB.
ра
7827/4
FROM:
K G W FROST
DATE:
25 MARCH 1986
CC
Mr Ainscow
HONG KONG: UK GUARANTEE OF LIABILITIES
TO THE ASIAN DEVELOPMENT BANK
Problem
Mr Buist (on return) Mr Ireton
Mr P E Denison, HMT
Mr TW M Smith, FCO (HKD)
1.
Should we authorise Hong Kong to contribute US$1 million
to the next replenishment of the Asian Development Fund (AsDF V),
thus increasing the UK's contingent liability under our guarantee
of Hong Kong's obligations to the Asian Development Bank (AsDB)?
Recommendation
2.
Hong Kong believes, and we agree, that the balance of
advantage, which is essentially political, just lies in making
a contribution to the AsDF V. As the effect on our liability is
relatively marginal, and the obligation should be discharged
before we return Hong Kong to the People's Republic of China (PRC)
in 1997, I recommend that we should agree that Hong Kong may
contribute US$1 million to AsDF V.
3. This submission has the support of Hong Kong Department in
the Diplomatic Wing, the Treasury, and APD.
Background and Argument
4.
Under the AsDB's Articles of Agreement, the UK is required
to guarantee Hong Kong's liabilities for as long as it is
responsible for the territory's international relations. We
/accepted that
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