Our main difficulty, as you will have inferred, is with the

proposition that the ADB should treat the Airport Authority and

the Mass Transit Railway Corporation as private sector bodies even though they are not. We do not feel that it would be proper

for us as a third party to put pressure on ADB to act against the dictates of its normal practice.It may well be that what you are

proposing could be accommodated within the provisions of Article

11 or Article 14 of the Agreement establishing the Asian

Development Bank or other regulations agreed subsequently, but

this would ultimately be for the ADB's General Counsel to

pronounce upon.

6.

"the previous paragraph

Our conclusion therefore is that from our point of view your

best course of action would be to deal with the Bank through the

Australian Executive Director, Peter McCawley, as you have been

doing up till now (your telno.1022). For the reasons already set

out in this telegram we should be reluctant to ask Dr Bühler to

carry out

active lobbying, the more So as he is not a UK national. Nevertheless he should be kept informed of what is

火 [Either] I accordingly brought him up to date on this matter during my visit to Hong Kong for the ADB Annual Meeting.

[Or] I am writing to him with full details of what has happened

so far.

-wr

going on.

7.

I trust that you understand the reasons for the line which

You are taking. Please let me know if we need any further information or help.

we

HURD

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