TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 45

CONFIDENTIAL

41

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1264

OF 30090OZ MARCH 88

INFO IMMEDIATE PEKING

40

MKC 102/1

HELE VED IN

30 MARY

034153

MDHIAN 4054

TOP COPY Q DIST ?7

DESK OFFICER

38

FCO TELNO 837 AND PEKING TELNO 573 : MIGA

WE AGREE THAT STEPS SHOULD NOW BE TAKEN TO INCLUDE HONG KONG IN THE

UK'S RATIFICATION, AND

AND FOR THE NECESSARY IMPLEMENTING ORDER-IN-COUN- CIL TO BE APPLIED TO HONG KONG, SO THAT HONG KONG WILL BE IN A POSITION TO IMPLEMENT THE CONVENTION FROM THE DATE IT COMES INTO FORCE FOR THE UK (AND HK).

2. IT APPEARS TO US THAT THE CHINESE SIDE IS MAKING IT A CONDITION FOR THE APPLICATION OF THE CONVENTION TO THE SAR AFTER 1997 THAT THE PRC SHOULD HAVE BECOME A PARTY TO IT. IF THAT IS THE CASE, WE DO NOT THINK THAT WE SHOULD ACCEPT THAT CONDITION, AS THERE ARE POSSIBIL- ITIES OF FINDING WAYS FOR THE CONVENTION TO CONTINUE TO APPLY TO THE

HKSAR EVEN IF THE PRC DECIDES NOT TO APPLY IT TO THE WHOLE OF THE PRC. WE, THEREFORE, SUGGEST IT WOULD BE ADVISABLE FOR US TO PUT DOWN A MARKER WITH THE CHINESE WHICH KEEPS OPEN THESE POSSIBILITIES, BUT

WITHOUT PROVOKING A STERILE DEBATE NOW.

3. SUBJECT TO YOUR AND PEKING'S VIEWS, WE SUGGEST THAT PEKING SHOULD RESPOND TO THE CHINESE SIDE BY SAYING THAT WE ARE GLAD THAT THEY HAVE NO OBJECTION IN PRINCIPLE TO THE CONTINUED APPLICATION OF THE CONVENTION AFTER 1997 (THIS PICKS UP THE LANGUAGE OF PARA. 2(1) OF THE GUIDELINES). WE COULD GO ON TO SAY THAT WE AGREE THAT THE TWO SIDES SHOULD IN DUE COURSE DISCUSS IN THE JLG THE WHOLE QUESTION OF SPECIFIC MEASURES FOR SUCH CONTINUED APPLICATION, ADDING THAT IF THE PRC DECIDED TO BECOME A PARTY TO THE CONVENTION THE QUESTION

WOULD BE RELATIVELY SIMPLE.

WILSON

YYYY

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