From:

Extn:

RM A Ainscow

0480

Date: 29 October 1993

cc: PS/Mr Lankester

Mr Hudson

Mr Ireton (or)

Mr Power

Mr Chakrabarti

Ms Cund

Mr Whitney, HKD

PS/Lady Chalker

IMF/WORLD BANK 1997 ANNUAL MEETINGS: HONG KONG

Problem

Hong Kong is bidding to host the 1997 IMF/World Bank Annual Meetings. It will need to incur expenses (primarily staff costs for the planning team and advance hire of conference facilities) before the July 1996 handover to China. As the metropolitan power, HMG will probably need to guarantee that Hong Kong will provide the services, and thus accept something akin to a contingent liability of around £3.5mn. Should ODA share this liability jointly (i.e. up to £1.75mn) with the Treasury?

Recommendation

2.

Provided other elements of the package can be resolved satisfactorily, Hong Kong remains very keen to host the meeting, an objective which has full FCO Ministerial backing. If it becomes necessary for HMG to accept a contingent liability, we

should agree to share this jointly with Treasury. Aid Policy and

Finance Departments concur.

Background

3.

IMF/World Bank Annual Meetings are held outside Washington

once every three years. 1997 is Asia's turn; and Hong Kong has for some time registered its wish to host the meetings. Bank and

/Fund

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