01-DEC-1992 12:53
PAUL FIFOOT
FAX TRANSMISSION
To: NIGEL WHITNEY
Hong Kong Dept,FCO
Fax No: 071 270 33
0372723755
P.01/02
Pages, including this page: 2
From: PAUL FIFOOT
Fax and tel no: 0372 723755
Date: 1st December 1992
HMOCS: AUTHORITY TO MAKE PAYMENTS
1. Your fax of 25th November re legal authority to provide a sterling safeguard.
2. You will need authority to make payments under the compensation etc scheme as well as for sterling safeguards. I attach a photostat of section 12 of the Overseas Development and Co-operation Act 1930 which, with some help from paragraph 3(2) of the Schedule to the Hong Kong Act 1985, should enable us to provide for both.
3. The first question is whether we want to make these arrangements with the (present) government of Hong Kong, (I do not think it matters that government will expire before some at least of the operative provisions take effect) or whetner we make them unilaterally in relation to Hong Kong. In the latter event we will need to exercise the power in the Hong Kong Act to amend the 1980 Act. It would also be desirable to amend the 1980 Act under that power to make specific provision for a sterling guarantee.
4. You will need to get Treasury acceptance that this will be a satisfactory way of proceeding so far as they are concerned. Would you like me to draft a paper ?
P.F.
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ØRDEC-1992
12:53
PAUL FIFOOT