CONFIDENTIAL
163262
MDHOAN 6947
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 165
HKC 102/1
RECEIVED IN REGISCH
20 JAN 1988
DESK OFFICER
OF 191815Z JANUARY 88
INFO IMMEDIATE PEKING
INDEX
3-5
PA
(6)
REGISTRY
Action Taken ?
TOP COPY
DIST ?
YOUR TELNOS 178/180 AND PEKING TELNO 83: MULTILATERAL INVESTMENT
GUARANTEE AGENCY (MIGA)
1.
THANK YOU FOR THE DRAFTS IN SECOND AND THIRD TURS. WE HAVE CONSULTED THE ODA, WHO ARE IN THE LEAD HERE.
2. THEY NOW ADVISE THAT THEY ARE AT PRESENT EXPLORING THE
POSSIBILITY OF EXCLUDING ALL UK DEPENDENT TERRITORIES AND
OFFSHORE ISLANDS AT THE OUTSET AND INCLUDING THEM LATER.
APPARENTLY A LEGAL PRECEDENT FOR THIS EXISTS IN THE FORM OF THE
ICSID CONVENTION (CONVENTION ON THE SETTLEMENT OF INVESTMENT
DISPUTES BETWEEN STATES AND NATIONALS OF OTHER STATES). ON THAT OCCASION, WE NOTIFIED THE DEPOSITARY THAT THE UK EXCLUDED
FROM THE APPLICATION OF THE CONVENTION CERTAIN SPECIFIC
TERRITORIES QUOTE PENDING WRITTEN NOTIFICATION TO THE CONTRARY
UNQUOTE. IF THE WORLD BANK AGREE TO OUR USING A SIMILAR FORMULATION IN RESPECT OF THE MIGA CONVENTION, THE PRESSURE TO SECURE AN EARLY ANSWER FROM THE CHINESE WOULD NOT BE SO GREAT. 3. TO TAKE ACCOUNT OF THESE DEVELOPMENTS, WE SUGGEST THE
FOLLOWING AMENDMENTS:
(A) DRAFT SPEAKING NOTE
(I) PARA 2, SECOND SENTENCE, AMEND TO READ QUOTE OPERATIONAL REGULATIONS ... UNQUOTE.
(II) PARA 3, DELETE SECOND AND THIRD SENTENCES.
(B) DRAFT QUESTIONS AND ANSWERS
...
DRAFT
(I) A2: THERE ARE NOW 6 DEVELOPED (ADD SWEDEN) AND 17
DEVELOPING COUNTRIES (ADD JAMAICA) WHO HAVE RATIFIED THE
CONVENTION. THIS MAKES A TOTAL OF ABOUT 25 PER CENT OF THE AUTHORISED CAPITAL. 33 PER CENT IS REQUIRED BEFORE THE
CONVENTION ENTERS INTO FORCE.
(II) A3 IS ONLY CORRECT IF Q3 RELATES TO THE PERIOD
AFTER 1997. IF THE PRC RATIFIES THE MIGA CONVENTION BEFORE THEM, IT WILL BE A DEVELOPING MEMBER COUNTRY FOR THE PURPOSES OF ARTICLE 14. A HONG KONG INVESTOR WOULD THEN BE ELIGIBLE
FOR A MIGA GUARANTEE IN RESPECT OF INVESTMENTS IN THE PRC, PROVIDED HE SATISFIED THE ELIGIBILITY CRITERIA OF ARTICLE 13,
(I.E. IF SUCH AN INVESTOR WERE NOT (NOT) A PRC NATIONAL).
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