MARK
033123
MDLIAN 9588
RESTRICTED
FM ODA LONDON
TO PRIORITY HONG KONG
TELNO 1235
OF 241554Z JANUARY 92
INFO. ROUTINE PEKING
RESTRICTED
+lks 102/1
Pa
INFO. ROUTINE MANILA (FOR U.K. EXECUTIVE DIRECTOR, ASIAN DEVELOPMENT BANK)
INFO. ROUTINE FCO LONDON
FROM MRS. JENNIFER RDICE, IFID/ODA V708.
Q
YOUR TEL.NO. 158:- CONTRIBUTION BY HONG KONG TO THE ASIAN DEVELOPMENT FUND.
WE WELCOME THE NEWS THAT HONG KONG INTENDS TO CONTRIBUTE US.DLRS. MILLION TO THE FIFTH REPLENISHMENT OF THE ASIAN DEVELOPMENT FUND. (WE HAD UNDERSTOOD FROM AN ANNOUNCEMENT BY THE CHAIRMAN OF THE REPLENISHMENT NEGOTIATIONS AT THE FINAL MEETING OF DONORS IN DECEMBER THAT HONG KONG'S CONTRIBUTION WOULD BE ABOUT USDLRS. 2 MILLION.).
3
2. YOUR PARAGRAPH 6. THE CURRENT STATUTORY LIMIT FOR THE U.K. GUARANTEE TO THE ASIAN DEVELOPMENT BANK OF LIABILITIES FOR ANY MEMBER OF THE ASDB FOR WHOSE EXTERNAL RELATIONS THE UNITED KINGDOM IS RESPONSIBLE WAS INCREASED FROM PDS. STG. 90 MILLION TO PDS. STG. 140 MILLION IN FEBRUARY 1986 BY THE ASIAN DEVELOPMENT BANK (EXTENSION OF LIMIT ON GUARANTEES) ORDER 1986. (IN PRACTICE THIS APPLIES ONLY TO HONG KONG.). BUT WITHOUT FURTHER RESEARCH AND CONSULTATION HERE WE CANNOT CONFIRM THAT THE STATUTORY LIMIT WILL COVER THE PROPOSED CONTRIBUTION. WE SHALL NEED TO TAKE INTO ACCOUNT THE FOLLOWING FACTORS:-
A. HONG KONG'S PRESENT LEVEL OF CALLABLE (AS OPPOSED TO PAID-IN) CAPITL STOCK.,
B. ANY LIABILITIES WHICH HONG KONG MAY INCUR IN CONSEQUENCE OF THE NEXT GENERAL CAPITAL INCREASE, PROBABLY IN 1994.,
C. ANY CONTINUING LIABILITIES ARISING OUT OF THE LAST TWO REPLENISHMENTS (I.E. PROMISSORY NOTES NOT YET DRAWN DOWN).,
D. THE MECHANICS OF ENSURING THAT HONG KONG'S CONTRIBUTION TO ADF
1
PAGE RESTRICTED