ASIAN DEVELOPMENT BANK: 25TH ANNUAL MEETING OF THE BOARD OF COVERNORS
HONG KONG, 4-6 MAY 1992
Note of a Meeting on Monday 4 May 1992 between Mr Freeman and Mr Chen Yuan, Alternate Governor at the Asian Development Bank for the People's Republic of China
Present:
Mr Freeman Mrs Radice
Mr Elston, BOE Mr Davis
Mr Chen Yuan
and three colleagues
(The meeting took place at the request of the Chinese.)
1. Mr Freeman recalled that Chris Patten, the Governor- designate of Hong Kong, had visited Beijing for the 1989 Annual Meeting of the Asian Development Bank. Mr Freeman said that he himself was impressed by Hong Kong's flourishing economy and its close relations with China. Mr Chen Yuan said that everybody was full of confidence about the transfer of Hong Kong to China in 1997. China attached great importance to the prosperity of Hong Kong and to the stability and accountability of its financial and monetary system, which was
which was the basis for future development. Still closer cooperation between the two sides was needed.
2. In response to a question from Mr Freeman, Mr Chen Yuan said that he had today discussed the question of a loan from the ASDB for projects for the new airport at Chek Lap Kok. He foresaw no problems, since the Hong Kong projects would be very profitable; but "fine words" were needed from the Asian Development Bank.
3.
Mr Freeman asked about China's relations with the AsDB. Mr Chen Yuan welcomed the increase in Bank lending to China. China needed finance for power and other infrastructure projects. He hoped that there would be more participation by overseas companies in China's industry. Mr Freeman said that the United Kingdom saw the ASDB as a major financier and had pressed for access by China to the fifth replenishment of the Asian Development Fund. He would make this point in his statement to the Annual Meeting. Mr Chen Yuan was grateful for this. He said that 50 million people were below the poverty line in China. There were even some poor in the generally prosperous Guangdong province. Mr Freeman added that he hoped to see more private sector development in China.
4. Mr Elston expressed the hope that the Hong Kong monetary system would remain robust. Up till now the HongKong and Shanghai Banking Corporation had played a
Corporation had played a quasi-Central Bank role, but the Bank of China would issue bank notes before 1997. Mr Chen Yuan said that he had recently visited Washington and New York for the IMF meeting and had met representatives of various banks, who had a large presence in Hong Kong.