CONFIDENTIAL

MAS 102/1

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2714

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CONFIDENTIAL

FM UKREP JLG HONG KONG

TO PRIORITY FCO

TELNO 176

OF 240655Z APRIL 92

INFO ROUTINE PEKING, HONG KONG

B

127555 MDLIAN 0916

TOP COPY

Q DIST?

MEETING WITH ZHONG JIANHAU, 24 APRIL: ASIAN DEVELOPMENT BANK (ADB)

ADB MEMBERSHIP

READING FROM A SPEAKING NOTE (BY FAX), PARTON SAID THAT IN OCTOBER 1985, THE UK AND THE PRC HAD EXCHANGED NOTES CONCERNING, INTER ALIA, HK'S FUTURE STATUS IN THE ADB. IT HAD BEEN AGREED THAT HONG KONG WOULD CONTINUE ITS PARTICIPATION IN THE ADB AFTER 30 JUNE 1997, USING THE NAME HONG KONG, CHINA''. IN APRIL 1986, WE HAD ACCORDINGLY WRITTEN TO THE THEN ADB PRESIDENT MASAO FUJIOKA DRAWING HIS ATTENTION TO THE EXCHANGE OF NOTES.

2. IN A COURTESY CALL IN LATE MARCH THIS YEAR BY CURRENT ADB PRESIDENT KIRIMASU TARUMIZU ON THE FINANCIAL SECRETARY IT HAD BECOME APPARENT THAT THE PRESIDENT WAS UNCERTAIN ABOUT THE POSITION RELATING TO HK'S MEMBERSHIP AND DID NOT SEEM TO HAVE BEEN AWARE OF THE APRIL 1986 LETTER TO HIS PREDECESSOR PRESIDENT FUJIOKA. WE NOW UNDERSTOOD THAT THE LETTER HAD NOT BEEN CIRCULATED BY PRESIDENT FUJIOKA TO THE ADB GENERAL COUNSEL'S OFFICE FOR NOTING OR ANY FURTHER ACTION.

3.

SO THAT THE ARRANGEMENTS AGREED ON BY OUR TWO SIDES IN 1985 COULD BE FORMALLY NOTED BY THE ADB, WE INTENDED TO LIAISE WITH THE BANK, REFERRING TO THE APRIL 1986 LETTER, AND ASK THEM IF THERE WERE ANY TECHNICAL STEPS WHICH MIGHT BE REQUIRED.

4. ZHONG THANKED PARTON FOR THIS INFORMATION.

ASIAN DEVELOPMENT FUND VI

5.

PARTON ALSO HANDED OVER A SPEAKING NOTE (BY FAX) ON HONG KONG'S CONTRIBUTION TO THE FIFTH REPLENISHMENT OF THE ADF. HKG HAD MADE CONTRIBUTIONS OF US DOLLAR 1 MILLION TO ADF IV AND ADF V IN 1983 AND 1987. WE HAD INFORMED THE CHINESE OF OUR CONTRIBUTION TO ADF V IN JULY 1986 AND POINTED OUT THAT THE CONTRIBUTION WOULD BE FULLY PAID UP BY 30 JUNE 1997, THEREFORE CREATING NO CONTINGENT LIABILITIES FOR CHINA. HKG NOW INTENDED TO CONTRIBUTE US DOLLAR 3 MILLION TO ADF VI SUBJECT TO PROVISION OF THE FUNDS BY FINANCE

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CONFIDENTIAL

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