TNAG-1489-FCO40-2046-Hong-Kong-and-the-Asian-Development-Bank-1986 — Page 117

ASIAN DEVELOPMENT BANK (EXTENSION OF LIMIT ON GUARANTEES)

ORDER 1986

Draft Opening Speech

1. I beg to move,

That the Committee have considered the draft

Asian Development Bank (Extension of Limit on Guarantees) Order 1986

2. This Order increases the limit of the guarantee which

the Government provides to the Asian Development Bank for obligations to the Bank incurred by Hong Kong. In particular

it is needed so that the Government can authorise Hong Kong

to purchase new shares allocated under the latest increase in

the Bank's Capital Stock. The need for the guarantee derives

from the Bank's Articles of Agreement, published in Cmnd 3762. In the past, the guarantee has applied to a number of British

the dependent territories which became members of the Bank

Solomon Islands, the Gilbert Islands and Hong Kong. But since

the first two of these territories became independent, it has

only covered Hong Kong.

3. The ADB was established in 1966.

-

The United Kingdom was

one of its founder members. Under Article 3 of the Bank's

Articles of Agreement we are required to guarantee Hong Kong's

liabilities for as long as we are responsible for the territory's

international relations. We accepted responsibility when Hong Kong joined the Bank in 1969.

/4.

I must emphasize