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MDHIAN 1584
ALSO NEED TO GIVE WRITTEN ASSURANCES WITH REGARD TO THE IMMUNITIES AND PRIVILEGES OF THE BANK AND FUND AND ISSUANCE
OF VISAS.
5. ZHANG SAID THAT THERE WOULD BE NO PROBLEM WITH
REGARD TO VISAS. HE ALSO SAID THAT ASSURANCES IN REGARD TO THE AGREED CONTRIBUTION WERE NOT A PROBLEM FOR CHINA.
6. I NOTED THAT IN PRACTICE IT WAS THE HONG KONG GOVERNMENT WHICH WOULD PROVIDE THAT AGREED CONTRIBUTIONS AND THAT THERE WERE PRACTICAL LIMITATIONS TO ANY ASSURANCES WHICH MIGHT BE GIVEN BY THE UK GOVERNMENT. IT MIGHT BE POSSIBLE FOR THE UK AUTHORITIES TO FORMALLY TRANSMIT HONG KONG'S ASSURANCES TO THE FUND AND BANK. THE PROPOSED LETTER FROM THE HK AUTHORITIES WOULD BE HELPFUL IN THIS CONTEXT. ZHANG SUGGESTED THAT THIS LATTER QUESTION MIGHT BE PURSUED BILATERALLY (WE WILL DO THIS AFTER THE BOARD RECESS, I.E. AFTER AUGUST 20).
7. VAN HOUTVEN HOTED THAT WHILE THE INVITATION FROM THE HOST MEMBER WAS A FORMAL DOCUMENT ON PUBLIC RECORD, STANDARD WRITTEN ASSURANCES IN THE FORM OF A MEMORANDUM OF UNDERSTANDING (BY BAG TO LONDON)WAS A PRACTICAL WORKING DOCUMENT. THIS SHOULD NOT BE SEEN AS OFFICIAL (IMPLICITLY HE SEEMED TO BE SUGGESTING THAT HK MIGHT PROVIDE THEIR ASSURANCES THROUGH SIGNING THE MEMORANDUM OF UNDERSTANDING).
8. THAHANE STRESSED THE IMPORTANCE OF SORTING OUT THESE PRACTICAL DETAILS BY THIS YEAR'S ANNUAL MEETINGS. THIS WOULD ALLOW THE SECRETARIES TO TRAVEL TO HONG KONG DURING OCTOBER. BOARD APPROVAL COULD THEN BE ACHIEVED BY THE END OF NOVEMBER, AND GOVERNORS APPROVAL DURING DECEMBER.
COMMENT
9. THE BANK AND FUND ARE CLEARLY LOOKING FOR SOME FORMAL COMMITMENT FROM THE UK WITH RESPECT OF ASSURANCES IN REGARD TO THE AGREED CONTRIBUTION BEFORE JULY 1 1997. IT IS NOT CLEAR WHETHER AN ASSURANCE FROM HK GOVERNMENT CONVEYED BY THE UK WILL BE SUFFICIENT. GRATEFUL FOR INTRUCTIONS. MOREOVER THE MEMO OF 5 AUGUST FROM ZHANG AND WEI TO THE SECRETARIES (FAXED TO LONDON AND HONG KONG) INDICATED THAT ALTHOUGH THE CHINESE ARE GETTING COLD FEET OVER THEIR EARLIER AGREEMENT TO A SUPPORTING LETTER FROM HONG KONG, THEY ARE PREPARED TO DICUSS THIS FURTHER.
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