23/04/92
16:31
I.F.I.D O.D.A → 071 278 3387
TU. 234
DRAFT TELEGRAM BY MRS RADICE
ENCLOSURES 024
PRIORITY
ADDRESSED TO: MANILA
DISTRIBUTION: MONETARY
HONG KONG DEPARTMENT, FCO SIR J COLES
MR BURNS
Return to room no. V708
Please pass following as quickly as possible to Dr Heinz Bühler. UK Executive Director at the Asian Development Bank.
FROM: JENNIFER RADICE, IFID/ODA.
POSSIBLE LENDING BY ASIAN DEVELOPMENT BANK TO HONG KONG FOR AIRPORT CORE PROGRAMME (ACP) PROJECTS
1. You may already be aware that the Hong Kong Government has been taken soundings on the possibility of the ADB making them giving a loan (amount unspecified) towards the financing of
of ACP projects.
2. We are in touch with the Hong Kong Government about this idea. We have certain reservations but have not yet come to any conclusive view.
3. We should meanwhile welcome your
welcome your early advice
advice on the following point, on which you may wish to consult either the Treasurer or the General Counsel. Any public sector loan from ADB to Hong Kong (as opposed to a private sector loan or equity investment without government guarantee) would require a guarantee from the Hong Kong Government. Although the question is at present hypothetical, we should like to know whether such a public sector loan would also require a counter-guarantee from the British Government. We presume from the wording of Article 3.3 of the Agreement establishing the ADB that such a counter- guarantee from the British Government would indeed be required, but would be grateful for confirmation of this.
4. If at all possible, it would be very helpful to have your reply no later than Monday 27 April.
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