TNAG-0626-FCO40-774-Representation-of-United-Nations-Economic-and-Social-Commiss-1977 — Page 5

布政司署

香港下亞畢道

**** OUR REF.: (54) in ECON 13/5691/74

* YOur Ref.:

Dear Department,

Government

C.S. 41A

COLONNAL SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

26th May, 1977.

Asian Reinsurance Corporation

REGES IN REGI YI

2 5 JUL 1977

121/582/1

HKK 121

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 wish 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 ESCAP that we are not in a position to join the ARC at this stage, we should be grateful for any comments which you or the other recipients of this letter may have.

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Yours ever,

Ri

Hong Kong Department,

Foreign and Commonwealth Office, London SW1,

England.

(K.C. Lo)

Economic Services Branch,

Government Secretariat