ifl.rb/Nov 93/2.11.3
HM Treasury
{Y MO!
Parliament Street London SW1P 3AG Telephone 071-270
74
M Power Esq
Overseas Development Administration
Room V710
94 Victoria Street
LONDON SW1E 5DJ
Dear Mile.
MKC 031/15
1 DEL 1993
2 January 1993
IMF AND WORLD BANK MEETINGS IN HONG KONG IN 1997
Further to my letter of 26 October, the Chancellor has agreed that UKDel should proceed to finalise the package of letters of invitation and memoranda of understanding between the Fund/Bank, the Chinese authorities, ourselves and the Hong Kong authorities. He has accepted that, if it cannot be avoided,
we will have to live with the contingent liability created by the memorandum of understanding between the UK and the Fund/Bank in respect of the costs of preparation for the meeting prior to 1 July 1997. know from my earlier letter, the Hong Kong authorities now estimate that these will amount to 40m Hong Kong dollars, around £4m at today's exchange rate.
As you
I
This liability would be split equally between the ODA and Treasury and you are in the process of consulting Baroness Chalker. should be grateful if you could let me know, as soon as possible, whether she is content. David Peretz will then be able to finalise this aspect of the text and the only remaining issue will be the proposed Chinese amendments to the text, which as I understand it, create difficulties for Hong Kong in relation to the validity after 1 July 1997 of visas issued before that date.
We will need in due course to approve the letters of invitation and the joint Treasury/ODA Minute reporting the liabilities to Parliament. My current intention is that the minute should be laid after the IMF/Bank Boards have agreed to recommend the invitation to Governors but before the closing date for Governors votes.
I am copying this letter to Kevin Tebbit and Nigel Whitney at the FCO, to James Lou in the Hong Kong Monetary Authority, to David Peretz at UKDel, to Mark Blythe (T.Sol) and to Helen Roberts here.
Note: squid to Mr Muir
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Javi
Jun.
J CUNLIFFE
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