03-NOV-1993 19:06
HUMA
+ 352 878 8197
P.02
July
On the Qraîl HK letter, we note that the words "before 1 1997" are added in the first sentence of the penultimate paragraph. This would be unhelpful as it implicitly cast uncertainties on the position after July 1, 1997. We prefer the original formulation, i.e. without the words "before July i, 1997", and could emphasize that this assurance echoes those given by UK and China. If this is not possible, this paragraph should be deleted as suggested by the Chinese.
On the MOU the visa related assurance is already provided in para. 4(a). Since the IMF lawyers prefer to retain 4(b). we need to keep the reference..to HKSARG. rather than PRC. If this is not acceptable to the Chinese, the alternative acceptable to us would be to delete para 4(b) altogether.
para
On para. 7 of the MOU, the bracketed reference in the last sentence should be the HKSARG which will provide the services and facilities. We also suggest rearranging the sentence as follows to make clear that HKMA will be the implementing agent both before and after 1997 -
#1
services
Kong Monetary Covernment for behalf of the July 1, 1997.
and facilities shall be provided by the Hong Authority on behalf of the Hong Kong the perivù
through June 30, 1997 and on Hong Kong Special Administrative Region from
Incidentally, in your fax of 29 October regarding the Memorandum оп Provision of Facilities and Services, our reading of the addition of the words "and reasonable" in para. 6(c) is that it will narrow HK's obligations. The security measures should not only be
"necessary", but also "reasonable" so that the HKMA could implement them. If the current drafting is not clear enough, the Bank/Fund may consider amending it to "all necessary measures considered reasonable" which in our lawyer's view will avoid doubt on our intention. On section D regarding the applicable laws, we do not feel strongly and are content to leave this section out.
On the signing of documents, we have no difficultly with your suggestion to issue side letters to give assurance that the Memoranda will be signed as drafted.
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