27/07 '93
10:04
0712706329
07/26/93
19:33
HMT INT. FINANCE →→✦✦ ERD
UKDEL IMF
002
002/002
(3
INT
MONES
NETAR
FUND
EXECUTIVE DIRECTOR
CONFIDENTIAL
Jon Cunliffe Esq
HM Treasury London, England
Dear Jon,
INTERNATIONAL MONETARY FUND
WASHINGTON, D. C. 20431
031/10
1997 ANNUAL MEETINGS
July 27, 1993
GABLE ADDRES
INTERFUND
Thank you for your leller of earlier today. I have spoken to van Houtven ́and given him a copy of the useful note attached to the letter.
His immediate reaction was that this is a situation without precedent. Apparently in the Berlin case the German Government did indeed agree to shoulder all the costs, and the sharing of costs between Berlin and the Bundesbank was an internal German matter. Nevertheless, after reading the note, van Houtven thought it should be possible to find a formula. But he needs to consult his lawyers. This will take a few days. Moreover, as he pointed out, the chinese reaction could be different.
In a separate development, Zhang--the Chinese World Bank Alternate virector--telephoned me today to say his authorities were having some "difficulty" with the idea of Hong Kong sending one of the three lettera of invitation. Ha felt this could be resolved (and understands Hong Kong's sensitivity on the subject quite well). Again, this looks like something that will take a little time to sort out.
My own conclusion is that it will simply not be feasible to proceed on the fast track: and that we should therefore settle for making progress as quickly as possible, with a view to submitting the formal invitation as quickly as possible after the Annual Meetings. This is a pity, since we and the Chinese had more or less got everyone here lined up to support Hong Kong's application. But there is no reason to think this support will dissipate over the next few months. The only indication of any risk at all was an approach I had from the World Bank Swiss Director, who told me Geneva was thinking of putting in a bid: but I think I persuaded him that it would not be Europe's turn again until the year 2000, and Geneva would do better to wait until then.
Could FCO pass a copy of this letter on to Hong Kong?
cc: Mx. J. Millett (FCO)
Yours ever
Daniel
David Peretz