TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 13

MIGA:

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BOARD OF DIRECTORS: 7 SEPTEMBER 1988

ITEM NO.

IDG 8788/990/101/001B

DESIGNATION OF UK'S DEPENDENT TERRITORIES AS

DEVELOPING MEMBER COUNTRIES

BRIEF FOR UK'S EXECUTIVE DIRECTOR

OBJECTIVE

1.

To obtain designation of Developing Member Country status of the 10 dependent territories covered by the Convention.

POINTS TO MAKE (POSITIVE)

2.

The Convention applies to the 10 territories mentioned by

virtue of Article 66. As paragraph 24 of the commentary on the Convention says,

"....dependent territories for whose international

relations a non-developing country is responsible, should be treated as developing members, if the non-developing member country so requests." The United Kingdom is responsible for the

international relations of these 10 territories. We are convinced

that MIGA could make a useful contribution to their social and

economic development and we therefore request that they be treated as developing members for the purposes of Article 14 of the

Convention. We recognise that such, designation would not apply to

United Kingdom cover for investments from Hong Kong in such territories.

POINTS TO MAKE (DEFENSIVE IF RAISED)

3.

Richer Dependent Territories:

(If Board members argue that

some dependent territories are relatively well off and ought not to

be classified as developing member countries). Neither the

Convention nor the Operational Regulations lay down criteria for developing member country designation. Some Category Two countries

are better off on a GNP per capita criterion

·

-

ten territories.

- than any of these

Moreover, all the territories are either small

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