26/07 '93 17:45 B0712706329
ifl.rb/July 93/26.7
HM Treasury
HIT INT, FINANCE →→→→ ERD
lestial
David Peretz
UKDel
Washington
Dear M. Pete
031/10
RECEIVED
DESK C
Parliament Street London SWIP 3AG Telephone 071-270
RY
AUG 1993
26 July 1993
INDEX
1997 ANNUAL KEETINGS: IK TELEO 246
28
да
@002/004
29)
the
There are now a number of issues in play on the proposal that 1997 Annual Meetings should be in Hong Kong. As you report in looks very tight indeed. your telegram, the fast timetable now
This letter sets out how we propose to proceed.
'Assurance from the UK
The suggestion assurance from
commitments
of
the institutions that the UK that we the Hong Kong
nay stand behind authorities could
vant
a
BOME form of the financial
be
major
stumbling block for two reasons:
(i) It would not be consistent with the very high level of autonomy which Hong Kong enjoys, and will continue to
in the conduct enjoy after 1997,
of its financial and ecrnomic affairs. Indeed Hong Kong's autonomy could be to stand damaged if either the UK or the PRC were required behind Hong Kong.
(11) We have made clear from the outside that there could be no UK contribution to the cost of the annual meetings. That would rule out taking on a contingent liability of this kind.
a
are
It is not clear from
institutions your telegram whether the actually have asked for an assurance of this kind and what the reasoning might be (is it, for example, the concern that Hong Kong is not
member of the Fund in its own right?). It would be
there interesting to know if
Cover this precedents which situation (the Berlin Annual Meeting in 1988). However, it is clear that if the institutions are insisting upon an assurance of this kind, ve will need to consult Treasury and Foreign Office Ministers and the Hong Kong authorities. One cannot rule out that ve will have to recommend against giving such an assurance.
We need, therefore, quickly to know whether this is a real issue for the institutions and what lies behind it. I agree with the (implicit). suggestion in your telegram that we should respond with à statement of the constitutional position. I suggest, therefore,
1
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