CONFIDENTIAL

5. FROM HERE THE BALANCE OF ADVANTAGE WOULD APPEAR TO LIFE (JUST)

IN CONTRIBUTING. BUT THIS WOULD NEED TO BE DONE IN A WAY WHICH

DOES NOT UNDERMINE THE GAINS ALREADY MADE IN THE JOINT LIAISON

GROUP. IT IS RELEVANT THAT OF WE DECIDED TO CONTRIBUTE IT IS

LIKELY THAT WE COULD ARRANGE WITH A.D.B. FOR THE HONG KONG

CONTRIBUTION TO BE FULLY DISBURSED BY 1997. THERE WOULD THUS BE

NO CONTINGENT LIABILITY FOR THE CHINESE. IT ALSO APPEARS THAT THE

RECENT INCREASE IN THE STATUTORY LIMIT FOR THE U.K. GUARANTEE OF

A.D.B. COMMITMENTS GIVES US LATITUDE TO MAKE A CONTRIBUTION TO

A.D.F. V OF ABOUT US DOLLARS 1M, WITHOUT FURTHER RECOURSE TO

PARLIAMENT. WE SHOULD BE GRATEFUL TO HAVE CONFIRMATION OF THIS.

6. SHOULD WE GO AHEAD, IT WOULD BE PRUDENT TO EXPLAIN TO THE

CHINESE (EVEN IF THEY HAVE NO LOCUS) EXACTLY WHAT WE ARE UP TO. TIME WILL NOT PERMIT US TO DO THIS AT J.L.G. MM, WHICH WOULD HAVE

BEEN THE NATURAL OPPORTUNITY. WE SHOULD HOWEVER LIKE TO DISCUSS

THE MODALITIES WITH DR. WILSON WHILE HE S HERE. GRATEFUL FOR ANY

COMMENT DESKBY 10 MARCH 0100Z.

YOUDE

IMITED ИКО

DRWILSON

CONFIDENTIAL

COPIES TO! ODA

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