TNAG-1489-FCO40-2046-Hong-Kong-and-the-Asian-Development-Bank-1986 — Page 130

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ASIAN DEVELOPMENT BANK: UK GUARANTEE OF HONG KONG'S

OBLIGATIONS

NOTES FOR SUPPLEMENTARIES AND WINDING UP

Other Guarantees

Note No A10

(1) Territories covered by our guarantee to the Asian Development Bank

Hong Kong is now the only one; our guarantee to ADB formerly covered callable

capital subscriptions from and loans to the Solomon and Gilbert Islands; but

these liabilities ceased for the UK when those territories became independent.

(2) Similar guarantees needed by other international financial institutions

IBRD/IDA Although it is unlikely that IBRD/IDA would lend direct to a British

dependency, if either did so the UK would be required to provide a guarantee in accordance with Section 8 of the Overseas Development and Co-operation Act 1980. This would also apply to any IBRD/IDA loans to the Caribbean Development Bank

which might be on-lent to Caribbean Commonwealth countries. The statutory limit

for UK guarantee of such lending is £150 million under Section 8(2) of the 1980

Act.

African Development Bank There are no dependencies to be covered.

Inter-American Development Bank - The Bank's Articles preclude membership of (and thus borrowing by) dependencies.