28/07 '93

09:28

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I've not heen

we

his description! (But I suppose after 1989 in Farape ear'r cavil).

8. The Hong Kong Executive Council has now formally

formally approved

the

proposal. Invitations would formally come from the Chinese,

but would be supported by the UK and Hong Kong. The invitations would take the form of letters to the Managing Director of the

Fund and the President of the World Bank. Drafts of these letters

are currently being finalised between the three governments. Before the letters are issued, the secretaries of the Fund and the

Bank would go to Hong Kong to satisfy themselves of the

suitability of the venue. Once the letters have issued, there

will need to be an Executive Board discussion of the proposal at both the Fund and the World Bank, followed by a postal vote of the

Governors of the two.

9.

On 5(ii) above, there will indeed be some expense for Hong

Kong. The Hong Kong government has put the cost at HK $200 million (about £17% million), but this is likely to be an over

estimate. In 1982, the Canadians were hosts, and spent US $4 million. The cost in West Berlin of roughly US $18 million

included some custom building. To a large extent the cost to Hong Kong would depend on how much it wished to spend.

10.

On 5(iii) above, the risk cannot be discounted. But there is always a risk, whenever the Annual Meetings take place in one of the more politically unstable parts of the world, The Fund and the Bank would almost certainly be able to cope, if necessary by cutting down on the scale of the meetings and holding them

elsewhere.

11. The proposal to hold the Annual Meetings in Hong Kong may be viewed as a derogation from our traditional policy of opposing the established policy of holding every third year's meetings outside Washington. Usually, we argue the cost and trouble does not justify holding meetings elsewhere (though most IMP members disagree). But we believe there are strong reasons for proposing Hong Kong. The United States has been a strong opponent of "out- of-town" Annual Meetings, in this case they have agreed to support the Hong Kong 1997 proposal.

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