SECRET
SECRET
HKC 031/10
L. SEP 1993
х
FM HONG KONG
TO DESKBY 011030Z FCO
TELNO
1400
OF 010933Z SEPTEMBER 93
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
Soi
013377
MDHIAN 3399
PERSONAL FOR RICKETTS, HKD
(45)
44
YOUR TELNO 792 AND UKDEL IMF/IBRD TELNO 287: HONG KONG 1997 ANNUAL MEETINGS
WE
1.
WE TOO BELIEVE THAT WE SHOULD STEER THE CHINESE AWAY FROM THE JLG. WE NEED TO RESOLVE THE MATTER QUICKLY SO THAT A FORMAL INVITATION CAN BE ISSUED TO THE FUND/BANK AS SOON AS POSSIBLE. SHOULD CONTINUE TO TACKLE THE CHINESE THROUGH THE TECHNICAL CHANNELS TO AVOID POLITICISING THE MATTER AS MIGHT HAPPEN IF IT IS DEALT WITH IN THE JLG.
2. WE COULD, IF NECESSARY, USE THE CHANNEL OF THE CONFIDENTIAL FINANCIAL DIALOGUE. HOWEVER, WE WOULD PREFER TO USE THE EXISTING TECHNICAL CHANNEL, WHERE THE INTERLOCUTORS ARE ALREADY FAMILIAR WITH THE ISSUES.
3. OF THE THREE APPROACHES SUGGESTED BY ZHANG IN PARA. 4 OF SECOND TUR, OPTION 2 (I.E. LETTER FROM HKG TO BANK/IMF CONVEYED BY UKG) IS ACCEPTABLE TO US. WE DO NOT BELIEVE THIS WOULD IN ANY WAY INFRINGE ON CHINA'S SOVEREIGNTY OVER HONG KONG AFTER 1997, AS THE FORMAL INVITATION IS ISSUED BY CHINA. OPTION 1 IS NOT SATISFACTORY IN THAT IT DEPRIVES DIRECT COMMUNICATION BETWEEN HONG KONG AND IMF/BANK, A SITUATION WHICH WE SHOULD GUARD AGAINST IN THE PLANNING FOR THE ANNUAL MEETINGS AND IN A WIDER CONTEXT.
4.
IT IS NOT ENTIRELY CLEAR WHY ZHANG WAS SUGGESTING THAT THE BANK/IMF SECRETARIES RATHER THAN HKG SHOULD BE APPROACHED FOR AN INDICATION OF THE COST OF THE MEETINGS. HONG KONG, AS THE HOST CITY, IS REQUIRED TO MEET THE COST OF PROVIDING THE VENUE, TEMPORARY OFFICES, TRANSPORTATION AND LOCAL SUPPLIES ETC. IT IS TOO EARLY TO PREPARE A MEANINGFUL ESTIMATE AT THIS STAGE. IN APPROVING THE FINANCIAL IMPLICATIONS OF HOSTING THE ANNUAL MEETINGS IN 1997, THE FINANCE COMMITTEE OF LEGCO TOOK NOTE OF THE FACT THAT THE THAI GOVERNMENT SPENT ABOUT US DOLLARS 25MN ON HOSTING THE 1991 ANNUAL MEETINGS.