CONFIDENTIAL
170133
MDLOAN 1444
REGISTERED AS QUOTE VRA VSZ UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND CHONG KONG) UNQUOTE WITH A FOOTNOTE IN THE ALLOCATION TABLE THAT ON 1 JULY 1997 THE ENTRY WILL BE AMENDED TO QUOTE VRA VSZ CHINA CHONG KONG) UNQUOTE.
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8. THIS OPTION IS NOT WITHOUT DRAWBACKS FOR HONG KONG. A NUMBER OF CALL SIGNS WILL STILL NEED TO BE CHANGED FROM EG THE Z
AND VP SERIES.
9.
THE IMPLICATION FOR OTHER DTS OF THIS OPTION ARE:
(A) DISRUPTION FOR BERMUDA IN REALLOCATION OF THE VRT
SERIES.
(B) DISRUPTION FOR TURKS AND CAICOS ISLANDS IN REALLOCATION OF THE VSI SERIES.
(C) DISRUPTION FOR PITCAIRN ISLANDS IN REALLOCATION OF THE
VR6 SERIES.
10.
IT IS BY NO MEANS CERTAIN THAT THE CHINESE WILL ACCEPT THIS PROPOSAL. THEY MAY FIND IT UNACCEPTABLE THAT HONG KONG SHOULD CONTINUE TO USE AFTER 1997 CALL SIGN SERIES WHICH HAD BEEN FOR EXCLUSIVE USE OF THE UK DTS. (IN THAT CASE WE WOULD NEED TO CONSIDER DIFFERENT OPTIONS WHICH WOULD CERTAINLY INVOLVE GREATER DISRUPTION FOR HONG KONG.) BUT CLEARLY, BEFORE WE PUT THIS OPTION TO THE CHINESE WE NEED YOUR CONFIRMATION THAT YOU WOULD BE PREPARED TO UNDERGO THE NECESSARY REALLOCATIONS.
11. WE SHOULD BE GRATEFUL FOR YOUR VIEWS ON THE ABOVE BY
15 AUGUST IN ORDER TO ENABLE US TO TABLE A PROPOSAL TO THE CHINESE BEFORE THE NEXT MEETING OF THE JOINT LIAISON GROUP (25 28 SEPTEMBER).
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