TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 12

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proceedings of the Board are confidential... According to Section 2(b), "Meetings shall be open to attendance only by Directors and their Alternates, the Chairman, the President and such members of the staff as the President may designate, representatives of members appointed under Article 56(a) of the Convention, and such other persons as the Board may invite." On the face of it, it would seem that Spain ought not to be informed about our request relating to Gibraltar and therefore should be unable to stir up trouble; but can you advise on how firmly these rules are likely to be applied. What, in your opinion and without consulting others outside the Delegation, is the likelihood of Spain finding out legitimately or by a leak?

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If Spain did learn of our request, it is possible that she might invoke Article 56(a) of the Convention and wish to send a representative to the Board meeting. For the benefit of copy-addressees who do not hold copies of the Convention, Article 56

states:

Article 56.

Interpretation and Application of the Convention

(a) Any question of interpretation or application of the provisions of this Convention arising between any member of the Agency and the Agency or among members of the Agency shall be submitted to the Board for its decision. Any member which is particularly affected by the question and which is not otherwise represented by a national in the Board may send a representative to attend any meeting of the Board at which such question is considered.

(b) In any case where the Board has given a decision under Section (a) above, any member may require that the question be referred to the Council, whose decision shall be final. Pending the result of the referral to the Council, the Agency may, so far as it deems necessary, act on the basis of the decision of the Board.

The brief and Giles Paxman's minute of 26 July attempts to cover this eventuality.

Yous aye

wall

W T BIRRELL

ENC.

FCO Diplomatic Wing

Mr Penfold, WIAD

Mr Paxman, SED

Mr Wood, Hong Kong Dept

Mr Broad, FID

Mr Peart, SPD

Mr Grainger, Legal Advisers

FCO (ODA)

Mr Kingsmill, E&SD

Mr David, APD

External

Miss Life, HM Treasury

Miss Fleming, Bank of England Mr Pond, ECGD

Mr Ebsworth, DTI

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