XCC(93)57
financial centre. The hosting of the 1997 Meetings is therefore pertinent to the functions of the Monetary Authority. This view is supported by legal advice.
15
The Exchange Fund Advisory Committee (chaired by the Financial Secretary) which advises the Financial Secretary on matters relating to the Exchange Fund, has agreed in principle that it would be appropriate for a contribution to be made from the Exchange Fund towards the cost of hosting the 1997 Annual Meetings in Hong Kong, subject to a formal decision by Members that Hong Kong should host the Meetings. The size and timing of this contribution would be considered at a later stage when detailed cost estimates are available.
16
Finally, the cost of the Meetings should be viewed against the additional tourism and related receipts resulting from the estimated 10,000 delegates and visitors coming for the Meetings. According to surveys conducted in 1992 by the Hong Kong Tourist Association on spendings by convention delegates, the tourism receipt would be estimated at HK$200 million at HK$20,000 per delegate for a seven-night stay.
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THE WAY FORWARD
17
Given that China has addressed our concerns by agreeing the role to be played by Hong Kong at the Meetings (paragraphs 8-9 above) and acknowledging that the bulk of the cost of the Meetings would be incurred after 1997, i.e. borne by the HKSARG (paragraph 10 above), it is recommended that Members should now agree that a formal application for holding the 1997 Meetings be made, subject to acceptance of the financial implications by the Finance Committee of the Legislative Council.
18
After approval by Members, we would update the Chinese JLG office on the present development.
FINANCIAL AND STAFFING IMPLICATIONS
19
The cost implications and the funding of the 1997 Meetings have been discussed in paragraphs 10 to 16 above. Depending on the size and timing of the amounts forthcoming from other sources including the Exchange Fund, appropriate provision for the Government's contribution will have to be included in the annual estimates, mainly in 1996-97 and 1997-98.