TNAG-1489-FCO40-2046-Hong-Kong-and-the-Asian-Development-Bank-1986 — Page 38

NOTE FOR THE RECORD

pa ADB

ASIAN DEVELOPMENT BANK ANNUAL MEETING, MANILA, 30 APRIL 2 MAY 1986

1. This note expands on the delegation's reporting telex, Manila AsDB unnumbered telex of 2 May 1986, copy attached.

2. Copies are also attached of the UK statement, of the note of the UK interview with the President, and of President Fujioka's opening speech.

Detail

3.

44 out of 47 member countries attended. Taiwan were missing.

4.

Afghanistan, Cambodia and

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President Aquino opened the meeting and outlined the policy directions of her new Government. The Philippine Governor also subsequently dilated on his country's economic problems and how the Government intends to meet them. (Copies of both speeches will be circulated if requested.) All countries expressed political and, in some cases, other support for the new Government.

5.

Spain and PRC were welcomed as new members. In responding, China said that Taiwan was part of China, but that the PRC Government was willing to work together with Taiwan representatives within the Bank's framework. Taiwan had indicated before the meeting that it would not attend because it objected to the intention to call it Taipeh, China. However, it is expected that Taiwan will continue to participate in the Bank's activities, including the latest AsDF replenishment.

6. The Bank' President asked Governors to indicate their preferences on the future size of the Board of Directors. The results were predictable. The regional countries all wanted an increase of one seat so that China could be represented without the four countries (Afghanistan, Laos, Sri Lanka and Vietnam) in the residual constituency losing their constituency. They emphasized that the Asian character of the Bank had to be preserved, and also the rights of the smaller member countries. Australia and Japan firmly supported one additional seat. Non- regional countries wanted to keep the Board at the same size. However, if that were not feasible many preferred an increase to 14 or even 15 (mainly Canada, Netherlands and the Nordic countries, which together make up the largest existing non-Regional constituency). The UK emphasized that China should have a seat, but that costs should be kept down. The President concluded that there was no majority for any one situation. It would therefore appear that there will continue to be stalemate in the Board on consideration of this issue.

7. As expected, an agenda item was added on the Election of the President. Mr Fujioka was re-elected with full support from member countries. It is not clear how long he will actually serve. His potential successor, Mr Toyoo Gyohten, attended the meeting.

8. Most Governors's speeches referred to the moderately improving global economic situation and to the slowdown of growth in Asia last year, with hopes for an improvement this year. There was the usual emphasis on adverse factors such as the fall in commodity prices, increasing protectionism, reduced external demand for manufactured goods, and heavy debt-service burdens.

HRK 102/7.

RECEIVED 1 COUNTRY 1 5 MAY 1986

АВТОБ

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