IN CONFIDENCE

became a member of the Asian Development Bank, they will undertake

to assume, as from 1 July 1997, the guarantees given by the United Kingdom Government of Hong Kong's callable capital subscriptions including its contingent liability under the third general capital increase. attach a copy of the Exchange of Memoranda between the British and

Chinese Governments.

I

4.

The United Kingdom will therefore remain the guarantor of

Hong Kong's obligations to the Bank until 30 June 1997. Her Majesty's Government have obtained Parliamentary approval to extend the limit of the UK's guarantee, in order to cover the obligations that Hong Kong will incur as a result of its acquisition of shares under the third general capital increase.

purchase the new shares.

Hong Kong is therefore now in a position to

5. The Hong Kong Government expects to complete the necessary internal procedures relating to the acquisition of these new shares in the near

future, well within the revised subscription date of 31 May 1986.

JL F Buist

United Kingdom Alternate Governor

cc (silent)

Dr H M Schmid, AsDB Manila

(?)

Hong Kong

PAB Thomson Esq British Embassy Peking

JN Powell Esq FCO (HKD)

PE Denison Esq Treasury

IN CONFIDENCE

Share This Page