10
CONFIDENTIAL
174671
MDHIAN 4680
CONFIDENTIAL
FM HONG KONG
TO DESKBY 221300Z FCO
TELNO 321
OF 221145Z JANUARY 88
INFO IMMEDIATE PEKING
17
YOUR TELNO 165: MIGA
MKC 702
RECEIVED IN REGISTRY
25 JAN 1988
DESK OFFICER
INDEX
PA
TOP COPY Q DIST ?
WE NOTE THE ICSID PRECEDENT AND THAT THE ODA IS NOW EXPLORING THE
POSSIBILITY OF EXCLUDING FROM THE OUTSET ALL TERRITORIES FOR WHOSE
INTERNATIONAL RELATIONS THE UK IS RESPONSIBLE AND INCLUDING THEM
LATER. HOWEVER AS THINGS NOW STAND WE SEE SOME POSSIBLE DANGERS
FOR HONG KONG.
2. FIRST IT IS CONCEIVABLE THAT THE EXPLICIT EXCLUSION OF HONG
KONG FROM UK'S RATIFICATION MIGHT BE MISCONSTRUED BY POTENTIAL
INVESTORS AS AN INDICATION THAT WE ARE UNWILLING OR UNABLE TO
COOPERATE IN AN IMPORTANT INTERNATIONAL SCHEME FOR THE PROTECTION
OF FOREIGN INVESTORS. THIS WOULD NOT BE TOO SERIOUS A RISK IF
THE EXCLUSION WERE SHORT-LIVED BUT WOULD BECOME A MORE SIGNIFICANT
FACTOR AS TIME PASSED.
3. SECONDLY THE ADVICE FROM ODA IS BY NO MEANS CERTAIN, SINCE
THEY ARE APPARENTLY ONLY EXPLORING THE POSSIBILITY OF INTERIM
EXCLUSION AND SUBSEQUENT INCLUSION. WE FEEL THAT WE MUST NOT
BE EXCLUDED AT THE OUTSET UNLESS WE ARE QUITE CERTAIN THAT WE
CAN BE INCLUDED LATER ON. AND WITHIN A REASONABLE TIME FRAME.
4. IN THE LIGHT OF THE ABOVE IT MAY BE ADVISABLE TO RECAST THE
SECOND AND THIRD SENTENCES OF PARA 3 OF OUR DRAFT SPEAKING NOTE
TO READ
QUOTE IT SHOULD BE NOTED THAT IF HONG KONG WISHES TO PARTICIPATE
IN MIGA, IT SHOULD BE INCLUDED IN THE UNITED KINGDOMS RATIFICATION AT THE OUTSET SINCE THERE IS CONSIDERABLE DOUBT THAT, UNDER THE CONVENTION, HONG KONG WOULD BE ABLE TO BE EXCLUDED AT THE OUTSET AND SUBSEQUENTLY INCLUDED. UNQUOTE
SIMILAR WORKING WOULD BE NEEDED IN A6 OF THE DRAFT Q AND A FOR PEKING.
5, IF IT IS STILL ENVISAGED THAT THE UK WILL RATIFY IN MARCH
WE WILL NEED TO PROMPT THE CHINESE TO GIVE US A RESPONSE BEFORE
THE UK'S RATIFICATION. THERE WOULD OF COURSE BE NO NEED TO
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