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to be clear where we stand on the substance of the outstanding points and plan to submit to Ministers in early September along the lines set out below.
3. Date of the Meetings. We accept that the Bank and Fund have little room for flexibility but note that, although this is not a sticking point, Hong Kong would prefer to move the dates forward by one week. Hope Fund/Bank can agree to this.
4. Assurances on visas and immunities. Para 5 of UKDeL TUR implies that the Chinese believe that visas, privileges and immunities are a matter for them. Our view, which we are also checking with Legal Advisers, is that this is an area in which Hong Kong has autonomy, both before and after the change of sovereignty, thereby reinforcing the case for the MOU to be signed by Hong Kong and for seeking to avoid a situation where either the UK and/or China signed.
5.
Assurances on agreed contribution. We attach very considerable importance, in terms of upholding Hong Kong's autonomy and avoiding contingent Liability for HMG, to an arrangement whereby Hong Kong sign an MOU direct with Fund/Bank as suggested in Hong Kong's TUR, and that the standard Fund/Bank MOU is amended accordingly to reflect Hong Kong's autonomous position. If the Fund/Bank insist on more than this, we might consider the acceptability of meeting Fund/Bank concerns by transmitting the document containing Hong Kong's signature via the UK. Before doing so, however, we need to be satisfied that transmission of Hong Kong's assurances would not in itself constitute assumption of responsibility for, or create a Legitimate expectation that HMG would meet the consequences of, any financial default. We are consulting Legal Advisers on the point. The possibility should not, repeat not, be held out to Fund/Bank staff at this stage. We assume that the Chinese are
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