ཡ
CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 320
OF 04102OZ FEBRUARY 88
INFO PRIORITY PEKING
10
YOUR TELNO 321: MIGA
1
CONFIDENTIAL
ATOP COPY O DIST?
12/1
Нис. 102
VELVED IN REMOTE, -5 FEB 1988
K OFFICER
F
ntio.
73
041237
MDLOAN 1330
WE HAVE CONSIDERED THE ISSUES RAISED IN TUR WITH THE ODA
LEGAL ADVISERS.
2-
AND
IN OUR TELNO 165 WE EXPLAINED THAT THE ODA WERE EXPLORING
WITH THE WORLD BANK THE POSSIBILITY OF EXCLUDING DEPENDENT
TERRITORIES FROM, THE OUTSET AND INCLUDING THEM LATER. A RESPONSE
HAS NOW BEEN RECEIVED FROM THE WORLD BANK (TEXT IN MIFT). THE
BANK DO NOT EXPECT ANY PROBLEMS ALTHOUGH THEY QUOTE CANNOT SPEAK
FOR MIGA'S GOVERNING BODIES OR MEMBERS UNQUOTE. THEREFORE, ALTHOUGH NO ONE CAN SAY CATEGORICALLY THAT THERE WILL BE NO
PROBLEM TAKING INTO ACCOUNT THE ICSID PRECEDENT AND THE WORLD
BANK'S OWN VIEWS, IT SEEMS TO US THAT PROBLEMS WITH MIGA ARE
UNLIKELY TO ARISE.
3.
(I)
YOUR TUR RAISED TWO ISSUES ·
PARA 2: THAT EXCLUSION OF HONG KONG AT THE OUTSET MAY GIVE
THE WRONG IMPRESSION TO POTENTIAL INVESTORS AND
(II) PARA 3: THAT WE CANNOT BE CERTAIN THERE WILL BE NO
DIFFICULTIES WITH OUR PROPOSAL INITIALLY TO EXCLUDE DEPENDENT
TERRITORIES.
YOU ALSO SUGGESTED THAT THE UK RATIFICATION MIGHT BE
4-
DELAYED.
IN OUR VIEW THERE ARE SEVERAL POINTS TO BEAR IN MIND:
(I) THE HOUSE OF LORDS SECOND READING OF THE MIGA BILL IS
SCHEDULED FOR 23 FEBRUARY SO THAT EVEN IF THE REMAINING STEPS
FOLLOW QUICKLY, UK RATIFICATION IS NOT LIKELY TO TAKE PLACE MUCH
BEFORE THE END OF MARCH
(II) THE ORDER IN COUNCIL FOR EXTENDING THE MIGA BILL TO
DEPENDENT TERRITORIES IS NOW BEING PREPARED AND WILL SOON BE
CIRCULATED TO DEPENDENT TERRITORIES FOR THEIR APPROVAL:
(III) ANY GAP BETWEEN UK RATIFICATION, AND EXTENSION TO THE DEPENDENT TERRITORIES WOULD THEREFORE, WE HOPE, BE A SHORT ONE:
(IV) IT IS NOT (NOT) POSSIBLE TO SECURE THE DEGREE OF CERTAINTY
DEMANDED IN PARA 3 OF YOUR TUR. BUT WE DO NOT EXPECT A PROBLEM
IN THE MECHANISM THAT WE PROPOSE·
(V) MINISTERS HAVE STATED THAT THEY ATTACH
IMPORTANCE TO THE
EARLY RATIFICATION OF THE MIGA BILL. IT IS INDEED IMPERATIVE
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CONFIDENTIAL