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MDHIAN 3182
INFORM THE BANK/IMF OF THEIR SUPPORT FOR THE MEETINGS. THIS LETTER COULD THEN BE ANNEXED TO THE UK LETTER, (2) A LETTER FROM THE HONG KONG GOVERNMENT ADDRESSED TO THE BANK/IMF CONVEYED TO THE LATTER BY THE UK AUTHORITIES AS AN ANNEX TO THE UK LETTER, (3) THE UK LETTER MIGHT ALSO BE SIGNED BY THE HONG KONG GOVERNMENT. ZHANG BELIEVED THAT OPTION (1) WOULD BE MOST LIKELY TO MEET CHINESE CONCERNS THAT HONG KONG SHOULD NOT BE SEEN AS ACTING AUTONOMOUSLY IN THE FOREIGN POLICY ARENA WHICH WAS RESERVED FOR CHINA.
5.
ZHANG WONDERED WHETHER THE QUESTION OF THE HONG KONG LETTER MIGHT NOT BE THE MOST READILY RESOLVED BY THE JOINT LIAISON GROUP (JLG). HE WAS CONSIDERING SUGGESTING THIS TO HIS AUTHORITIES. THE JLG COULD TAKE DECISIONS WHEREAS IN WASHINGTON WE COULD ONLY SEEK INSTRUCTIONS.
6.
ZHANG ALSO RAISED THE QUESTION OF THAT WRITTEN ASSURANCES ON THE AGREED CONTRIBUTION. ONE POSSIBILITY DISCUSSED WAS THAT THE HONG
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HE
KONG GOVERNMENT MIGHT PROVIDE THE WRITTEN ASSURANCES AND THAT THESE MIGHT BE ENDORSED (BUT NOT GUARANTEED) BY THE UK AND CHINESE GOVERNMENTS. ZHANG THOUGHT THIS WAS AN INTERESTING IDEA AND SPEAKING PERSONALLY SAW NO PROBLEMS FROM THE CHINESE SIDE IN VIEW OF HONG KONG'S AUTONOMY IN REGARD TO FINANCIAL AND ECONOMIC MATTERS. THOUGHT THAT WE SHOULD PRESS THE BANK/IMF TO SHOW FLEXIBILITY ON THE MATTER OF ASSURANCES IN VIEW OF THE UNIQUE SITUATION OF HONG KONG. HE ALSO THOUGH THIS HIS AUTHORITIES WOULD WANT TO KNOW HOW MUCH THE MEETINGS WOULD COST HONG KONG BEFORE ENDORSING ANY ASSURANCES.
7.
ZHANG PROPOSED THAT WE SHOULD SEPARATELY SPEAK TO THE BANK/IMF SECRETARIES, SEEKING AN INDICATION OF THE COST OF THE MEETINGS (WHICH PRESUMABLY THEY WILL NEED TO DISCUSS WITH HONG KONG) AND SUGGESTING - WITHOUT COMMITMENT - THE IDEA THAT HONG KONG MIGHT SIGN THE ASSURANCES SUPPORTED BY AN ENDORSEMENT FROM THE UK AND CHINESE GOVERNMENTS. ZHANG EXPECTED THAT THE IMMEDIATE REACTION FROM THE BANK/IMF WOULD BE NEGATIVE BUT THOUGHT THAT WE SHOULD PRESS THEM TO BE FLEXIBLE. STANTON STRESSED THAT HE HAD NO INSTRUCTIONS ON THE ASSURANCES QUESTION AND COULD ONLY SPEAK PERSONALLY.
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