CONFIDENTIAL
145065
MDHIAN 3448
A 4
THE
: WITHOUT THE DESIGNATION, FOREIGN INVESTMENTS IN HONG KONG CANNOT BE PROTECTED UNDER THE CONVENTION. WE DO NOT THINK THAT THE
DESIGNATION WILL TOUCH UPON THE QUESTION OF SOVEREIGNTY BECAUSE THE WORD QUOTE COUNTRY UNQUOTE IS USED IN A SPECIAL SENSE IN THIS CONTEXT WHICH IS NOT EQUATED WITH THE TERM QUOTE STATE UNQUOTE. RELEVANT PROVISION IN THE OPERATIONAL REGULATIONS WAS DRAFTED TO ENABLE THE DEPENDENT TERRITORIES FOR WHOSE INTERNATIONAL RELATIONS
A NON-DEVELOPING MEMBER COUNTRY WAS RESPONSIBLE TO BE ELIGIBLE FOR MIGA'S PROTECTION. MOREOVER, SUCH DESIGNATION WOULD ONLY BE TRAN- SITIONAL, BECAUSE AFTER 1997, THE SAR WILL BE PART OF A STATE WHICH
IS SPECIFIED AS A DEVELOPING COUNTRY.
WHEN
Q5: THE PRC IS LIKELY TO RATIFY THE CONVENTION BEFORE 1997. THIS HAPPENS, THE HKSAR, AS A PART OF THE PRC WILL BE ABLE TO ENJOY ALL THE BENEFITS OF A DEVELOPING MEMBER COUNTRY THROUGH PRC'S
PARTICIPATION IN MIGA. IS IT NECESSARY TO DESIGNATE HONG KONG AS
A QUOTE DEVELOPING MEMBER COUNTRY UNQUOTE NOW?
A5 : IT IS VERY DESIRABLE THAT HONG KONG CAN ENJOY THE BENEFITS
OF THE DEVELOPING MEMBER COUNTRY STATUS OF MIGA BEFORE 1997 THROUGH
THE DESIGNATION. THE PROTECTION THAT CAN BE PROVIDED BY MIGA'S
INSURANCE SCHEMES IN RESPECT OF FOREIGN INVESTMENTS IN HONG KONG
MAY ENHANCE SOME INVESTOR'S CONFIDENCE IN HONG KONG. PARTICULARLY
IN THE RUN UP TO 1997 WHEN CONCERN ABOUT THE CON-COMMERCIAL RISKS
INVOLVED IN INVESTMENTS IN HONG KONG MAY INCREASE
Q6 : THE CHINESE SIDE NEED MORE TIME TO CONSIDER THE QUESTION OF THE CONTINUED APPLICATION OF THE CONVENTION TO HONG KONG AFTER 1997
CAN THE UNITED KINGDOM GOVERNMENT DEFER RATIFICATION?
A 6 : IF THE CHINESE SIDE ARE UNABLE TO RESPOND WITHIN THE 40-DAY CONSULTATION PERIOD, OUR INTENTION IS TO INCLUDE HONG KONG IN THE UNITED KINGDOM'S RATIFICATION FROM THE OUTSET SINCE IT WOULD BE
IMPOSSIBLE UNDER THE CONVENTION FOR HONG KONG TO BE EXCLUDED AT
THE OUTSET AND SUBSEQUENTLY INCLUDED. IT WOULD, HOWEVER, ALWAYS BE POSSIBLE TO EXCLUDE HONG KONG LATER, ALTHOUGH NATURALLY WE
WOULD REGRET TO HAVE TO DO SO.
Q7 : THE CHINESE SIDE UNDERSTAND THAT THE UNITED KINGDOM PARLIA-
MENT IS CONSIDERING A BILL TO IMPLEMENT THE CONVENTION IN ITS
APPLICATION TO THE UNITED KINGDOM. WILL THIS BILL AFFECT
HONG
KONG?
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CONFIDENTIAL