ASIAN DEVELOPMENT BANK (EXTENSION OF LIMIT ON GUARANTEES)
ORDER 1986
Draft Opening Speech
1. I beg to move,
That the Committee have considered the draft
Asian Development Bank (Extension of Limit on Guarantees) Order 1986
2. This Order increases the limit of the guarantee which
the Government provides to the Asian Development Bank for obligations to the Bank incurred by Hong Kong. In particular
it is needed so that the Government can authorise Hong Kong
to purchase new shares allocated under the latest increase in
the Bank's Capital Stock. The need for the guarantee derives
from the Bank's Articles of Agreement, published in Cmnd 3762. In the past, the guarantee has applied to a number of British
the dependent territories which became members of the Bank
Solomon Islands, the Gilbert Islands and Hong Kong. But since
the first two of these territories became independent, it has
only covered Hong Kong.
3. The ADB was established in 1966.
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The United Kingdom was
one of its founder members. Under Article 3 of the Bank's
Articles of Agreement we are required to guarantee Hong Kong's
liabilities for as long as we are responsible for the territory's
international relations. We accepted responsibility when Hong Kong joined the Bank in 1969.
/4.
I must emphasize