ASIAN DEVELOPMENT BANK: UK GUARANTEE OF HONG KONG'S
Note No A1
OBLIGATIONS
NOTES FOR SUPPLEMENTARIES AND WINDING UP
Justification for allowing Hong Kong to purchase additional shares
Hong Kong wishes to maintain its position in the Bank, and its good image with
the Bank and with other regional member countries, by subscribing its allotted
shares in this general capital increase. If it does not take up its shares,
doubts might be cast on Hong Kong's ability to continue to play a role in
international organisations; this in turn might affect international confidence
in the territory. That is clearly to be avoided.
[Notes:
1. Hong Kong participated fully in the Bank's activities, including subscribing
to the capital stock through its initial subscription and subsequent general
capital increases; also through a US$1 million contribution to the last
replenishment of the concessional Asian Development Fund (to benefit the poorer
developing member countries) and a US$100,000 contribution to the Bank's
Technical Assistance Special Fund.
[2. It could be argued that there is no apparent benefit in Hong Kong
participating in this capital increase, since its membership of the Bank does not
depend upon doing so, and the balance of voting power will not be significantly
affected one way or the other. Hong Kong's voting power is currently 0.969%.]