TNAG-0626-FCO40-774-Representation-of-United-Nations-Economic-and-Social-Commiss-1977 — Page 44

(54) in ECOŃ 13/5691/74.

26th May, 1977.

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Dear Department,

Asian Reinmurence Corporation

恕

R... R

4.

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is in the course of setting up an Asian Reinsurance Corporation (ARC) in Bangkok. The details are contained in the report of the Second Round-Table Meeting on an Asian Reinsurance Corporation organised jointly by UNCTAD and ESCAP in December 1976, a copy of which is enclosed. Hong Kong did not participate in this meeting.

2.

In his letter of 3 March 1977, also enclosed, the Executive Secretary of ESCAP asked whether Hong Kong was prepared to endorse the Round Table's recommendations and sign the Agreement establishing the ARC. Our view is that at this stage it would not be desirable for Hong Kong to join the ARC principally because we should not Jurish to compel our insurance and reinsurance institutions to direct to the ARC a part of their outward reinsurance treaties placed abroad. We also have doubts about the viability of the scheme and reservations on certain provisions of the Agreement, particularly Article XXI concerning the withdrawal of membership.

3*

Before we advise ESC/P that we are not in a position to join the ARC at this stage, tre should be grateful for any comments which you or the other recipients of this letter may have.

LART

SPE

Yours ever,

起

(K.C. Lo)

Demonic Services Branch,

Cover:mont Secretariat、

Hong Kong Department,

Foreign and Commonwealth Office, London Sl,

England.

c.c. Miss C. Swann, Bangkok.

V.R. Pheasant, Esq., MOD.

Insurance Division, DOT.

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