9
A further unfortunate aspect is that Hong Kong and Taiwan are now the two remaining DMC donors to ADF IV who have not yet agreed to contribute to ADF V. There is no firm indication yet as to whether Taiwan will eventually contribute. In the event that it does not,
that it does not, it would be an unfortunate coincidence if, soon after China joined the Bank, Hong Kong and Taiwan were both seen to be changing their attitude.
Proposal
10
On balance, therefore, the arguments favour contribution to ADF V in the same manner and to the same degree as the contribution to ADF IV, that
that is a relatively small amount of US$1 million (as against a replenishment total of US$3.6 billion) over the four year period 1987 to 1990. The Administration so recommends.
11
Subject to the approval of the Finance Committee of the Legislative Council, payment in
payment in the form of promissory notes would be made in four equal annual instalments, with the first instalment being paid not later than 1 November 1987. On the basis of past experience, encashment of the notes is not expected to commence until some time around 1990.
Consultation
12
The Foreign and Commonwealth Office advised that the proposed contribution would be within the current statutory limit of £140 million for the United Kingdom's guarantee of Hong Kong's liability to the ADB. They also indicated that there was no objection to such a contribution provided that there would be no ensuing financial liability for the Chinese after 30 June 1997. The ADB has confirmed that arrangements can be made to ensure that any such contribution would be fully disbursed before that date.
13
The Chinese Government was informed through the Sino-British Joint Liaison Group that Hong Kong had been asked to contribute to ADF V. They were further assured that if a decision to contribute was made, there would be no contingent liability for the Chinese Government.
Financial and staffing implications
14
A decision to contribute
expenditure of US$1.0
implications.
million.
as proposed involves total There are по staffing
CONFIDENTIAL
No comments yet.
Private notes are available after approval.