very keen to host the meeting.
Treasury accept that to pull out of the bid at this late stage could send damaging signals which
could undermine confidence in Hong Kong. They share our view that
there is no reason to believe that Hong Kong will be unable, in
financial or other terms, to deliver the services and facilities
it has promised; so the risk of HMG being asked to meet the guarantee is remote. Accordingly, they are prepared to recommend to the Chancellor that, in the final analysis, HMG should accept this contingent liability, on the understanding that it would be
shared jointly between the Treasury (with responsibility for the IMF) and ODA (with responsibility for the World Bank).
6.
David Peretz will be asked to make a further effort to see
if there is any way to avoid this liability; but the chances of
doing so are rated as slim. If we do take on the
the contingent
liability, Treasury consider that a joint minute notifying Parliament will probably need to be laid in due course.
RM A Ainscow
MP280ctl.Dft