TNAG-1489-FCO40-2046-Hong-Kong-and-the-Asian-Development-Bank-1986 — Page 99

In confiduer

OVERSEAS DEVELOPMENT ADMINISTRATION

Eland House Stag Place London SW1E 5DH

Telephone 01-213: 7759

or Switchboard 01-213:3000

"

& with 85186 querels)

Res

Papo

fro

1773

views.

Tel. to Wkx Pelling seeking

pa 220/3

Your reference

Our reference INT/147/01

J N Powell Esq FCO

Hong Kong Dept

K221

London

SW1

Dew

Jonathan

Date

13 March 1986

сору

sent. David

Nendick.

Carter

advised.

ASIAN DEVELOPMENT BANK: UK GUARANTEE OF HONG KONG'S LIABILITIES

Last Autumn we prepared a draft letter for our Alternate Governor of the AsDB to write to the Bank's President to inform him of the agreement with the Chinese on the transfer to the PRC of UK's guarantee of Hong Kong's liabilities to the Bank on 1 July 1997.

2. Parliamentary consideration of the statutory order to increase the limit of our guarantee only took place at the end of January, by which time PRC's membership of the Bank appeared imminent. We have therefore waited before resurrecting the draft, with the objective of simplyfying it through deletion of the references to what might happen if the PRC did not join the Bank by 1997. We have heard this week that the PRC completed the necessary procedures and is a member of the Bank with effect from 10 March 1986.

IẢN

3. I therefore now attach a revised draft letter deleting the necessary passages and with one or two other small amendments required because of the lapse of time since our original draft was prepared. I should be grateful for your views on it, and those of the other recipients of this letter.

If you are content but want to clear it with Hong Kong before it issues I will just put it to Ian Buist, who is now the Alternate Governor, in case he has any comment on it. The draft could then be cleared if you so wish.

4.

We have a copy of the final version of the UK memorandum, but have not received a copy of the English translation of the Chinese memorandum. I should be grateful if you would provide a copy.

5.

As this will be a letter to the ASDB, I propose to classify it "In Confidence". I should be grateful for your advice on the Hong Kong recipient of our letter as Blye has now retired.

Yours

المعرف

R O Carter

International Financial Institutions Department

сс

-she also receive fels.

PE Denison Esq - Treasury

JO Hill Esq - FCO - Legal Advisers

AKK 102/2

FIVED IN REGISTRY 1 7 MAR 1986

both no comment

CK OFFISER

PA

Action Taken

Azba2013