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ASIAN DEVELOPMENT BANK: UK GUARANTEE OF HONG KONG'S

OBLIGATIONS

NOTES FOR SUPPLEMENTARIES AND WINDING UP

Note No A5

Consideration given by UK to projects proposed for Hong Kong

The Bank appraises projects for consideration by its Board of Directors, on which the UK is represented. It takes account of economic, social and financial

factors. HMG comments on those proposals through its Director on the Bank's Board.

In effect, because of the requirement for the UK to guarantee Hong Kong's liabilities, a new project commitment could only be undertaken if we supported the proposal.

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