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013614
MDHOAN 7359
HKC U31/10
L SEF 1993
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FM FCO
TO DESKBY 01153OZ UKDEL IMF/IBRD WASHINGTON
TELNO 149
OF 011415Z SEPTEMBER 93
INFO IMMEDIATE HONG KONG, PEKING, UKREP JLG HONG KONG INFO IMMEDIATE HM TREASURY, BANK OF ENGLAND ODA
ODA FOR POWER, HM TREASURY FOR SEDGWICK AND CUNLIFFE, BANK OF ENGLAND FOR BULLOCH
(44)
YOUR TELNO 287: IMF/IBRD: HONG KONG 1997 ANNUAL MEETINGS
1. WE HAVE CONSULTED HONG KONG AND PEKING ON ZHANG'S PROPOSAL TO RAISE THE QUESTION OF THE HONG KONG INVITATION LETTER WITHIN THE JOINT LIAISON GROUP (JLG). OUR COLLECTIVE VIEW IS THAT IT WOULD BE BEST TO CONTINUE TO DEAL WITH THIS ISSUE THROUGH THE EXISTING TECHNICAL FINANCIAL CHANNELS. IF WE PUT IT INTO THE JLG, THERE IS A REAL RISK THAT THE CHINESE WILL BE LESS COOPERATIVE, AND WILL PLAY UP THE POLITICAL/SOVEREIGNTY ASPECTS.
2. WE NOTE FROM PARAGRAPH 2 OF TUR THAT ZHANG WILL LEAVE WASHINGTON ON 2 SEPTEMBER TO VISIT PEKING. GRATEFUL IF YOU COULD REVERT TO ZHANG BEFORE HE LEAVES AND SAY THAT OUR FIRM PREFERENCE IS TO CONTINUE TO DISCUSS THE ISSUE THROUGH IMF/IBRD OFFICES. YOU COULD SAY THAT IN OUR VIEW IT WILL BE BEST FOR THOSE WITH EXPERIENCE OF THE IMF/IBRD TO BE THE MAIN POINT OF CONTACT: THE JLG AGENDA IS ALREADY VERY CROWDED WITH OTHER PRESSING ISSUES.
3. FOR YOUR OWN INFORMATION, IF ZHANG CONTINUES TO TAKE THE LINE THAT THE PROBLEM SHOULD BE DEALT WITH ELSEWHERE, WE WILL CONSIDER WHETHER IT CAN BE RAISED DIRECT BETWEEN HONG KONG FINANCIAL EXPERTS AND THEIR COUNTERPARTS IN PEKING.
4. WE WILL REPLY SEPARATELY ON THE QUESTION OF AN ENDORSEMENT AS AGAINST A GUARANTEE ONCE WE HAVE OBTAINED LEGAL ADVICE.
HURD
YYYY
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