CONFIDENTIAL
XCC(92)26
15
It is too early to prepare any meaningful estimate of the cost of holding the 1997 Meetings in Hong Kong. By way of illustration, it cost Germany HK$120 million for the 1988 Meetings in Berlin, and Thailand HK$200 million for this year's Meetings in Bangkok. Responsibility for this expenditure falls on the host. Technically China would be the host. Although there have as yet been no discussions with the PRC on funding, it is likely that most of the expense would have to be borne by Hong Kong, and indeed there would be some advantages for Hong Kong in such an arrangement as it would underline our high degree of autonomy in commercial and financial affairs.
16
Although planning and preparatory work would have to begin long before 1997, the bulk of the disbursements would take place after 1 July 1997. Appropriate provision would therefore have to be included in the 1997-98 estimates, and money would be paid out of the SARG's Funds.
17
It is not possible to quantify the staffing implications at this stage. Clearly, the hosting of an event of this scale and importance would require considerable effort and manpower at a time when the Government's resources are likely to be fully stretched.
PUBLIC REACTION
18
The possibility of holding the 1997 Meetings in Hong Kong was discussed, on a confidential basis, within the Bank/Fund and in capitals of several key countries. During and after this year's Meetings in Bangkok, there were press reports on the UK/PRC joint interest in holding the 1997 Meetings in Hong Kong, but it has so far not aroused any great deal of public attention. However, it is expected that a decision to proceed with a formal application would be welcomed in Hong Kong. If the bid were successful, it would be seen as a clear affirmation of the Bank/Fund's confidence in Hong Kong's remaining an important international financial centre post-1997. On the other hand, a decision not to pursue the matter further, having expressed a positive interest to the contrary earlier, would lead to speculation as to why Hong Kong has backed off.
Executive Counci