TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 17

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All 10 are either small islands or peninsulas. "Small island

state" is a sub-category of developing countries which receives

special consideration in international fora because of their

vulnerability to natural, economic and political misfortunes.

10. Hong Kong/PRC: PRC Government told our Peking Embassy in March that they "had no objection to the application of the MIGA

Convention to Hong Kong before 1997 by the UK upon its ratification

of the Convention" and "after 1997 the Convention could continue

to apply to the Hong Kong SAR if the PRC had become a party to the

Convention. This question could be discussed in the Joint Liaison

Group in due course". PRC subsequently ratified the Convention on

30 April 1988.

11.

Hong Kong/Asian Dragons: USA may challenge DMC status for

Hong Kong as one of the four Asian "dragons" with whom she has

large trade deficits and/or for whose exchange rate with the dollar

causes concern (Hong Kong, Korea, Singapore and Taiwan). Korea is

a Category Two country member of MIGA (and in the Indonesian

constituency on the Board). Singapore is shown as a Category Two country in the Convention (but has not ratified). IFC Board

approved two small investments in Hong Kong last summer (IFC/R87-88

approved by the Board on 18 June 1987). See also FCO Tel No. 1953

to Hong Kong, Hong Kong's reply minute 2886 and minute dated 2 August from Mr Wood.

12.

Falkland Islands and Gibraltar: The Board should be

discussing developing member country status not sovereignty or territorial jurisdiction. Our bilateral aid disbursement treated

as oda in DAC statistics in 1987 included £9,029,000 to Gibraltar

and £8,165,000 to Falkland Islands. (See also IOC (88)61 of April

1988 and minutes dated 26 July 1988 from Mr Paxman of SED/FCO and

28 July 1988 from Mr Martin FID/FCO.)

IFID/ODA

August 1988

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