TNAG-0335-FCO40-371-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 11

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by 1 January 1973 (when we enter the EEC). But this

is not a firm commitment on our part, nor have we

said anything about the rate at which we shall fix).

(ii) CHINESE REPRESENTATION IN THE IMF AND IBRD

Contrary to expectations, the question of

Chinese representation was not raised at this

September's annual meetings of the International

Monetary Fund and World Bank (IBRD), either by

the Chinese Government or by other governments

sympathetic to China. We cannot, however, exclude

move within the next year to unseat Taiwan and to

but mainland China into the IMP's and IBRD's China

se

etas. Should this happen, there will be some

rickey questions to resolve, such as Taiwan's

Pinancial links with the two institutions.

Membership of the IMF carries with it obligations

which the Chinese may not be able or willing to

lischarge. For that reason it seems unlikely on

balance that the Chinese have yet decided to go for

embership. The subject is best avoided.

Defensive points

There are a number of complex problems arising

out of Taiwan's present membership of the IMF and IBRD

hich we imagine that other member governments

ill wish to consider carefully. (If pressed). We

re not opposed to China taking up its seat in the

und and Bank, provided always that it abides fully

y the rules of these two bodies.

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