TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 58

TO

IMMEDIATE PEKING

CONFIDENTIAL

FM FCO

TELNO 235

OF 161644Z MARCH 88

INFO IMMEDIATE HONG KONG

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HKC 1

IS TAR

ZAR 988

YOUR TELNO 494 AND HONG KONG TELNO 1105: MIGA

1.

170745

MDHOAN 2110

TOP COPY Q DIST ?

MODEV 003 WHICH WE HAVE NOW SEEN, WAS DESPATCHED WITHOUT CONSULTATION WITH HKD. IT REFLECTS THE VIEW OF THE ODA, IN RESPECT OF DEPENDENT TERRITORIES GENERALLY. THAT IT WOULD BE BETTER TO INCLUDE FROM THE OUTSET THOSE DEPENDENT TERRITORIES

WHICH ARE LIKELY TO WISH TO BE INCLUDED AND THOSE WHOSE INCLUSION

IS LIKELY TO BE CONTROVERSIAL IF IT HAPPENS LATER UNDER THE ICSID FORMULA. WE AGREE HOWEVER THAT THE COURSE OF ACTION IN RESPECT

OF HONG KONG PROPOSED IN MODEV 003 OVERLOOKS THE

CONSIDERATIONS SET OUT IN HONG KONG TUR AND IS LIKELY TO ANTAGONISE

THE CHINESE UNNECESSARILY. PLEASE THEREFORE DISREGARD MODEV 003.

2.

WE VERY MUCH HOPE THE CHINESE WILL BE ABLE TO GIVE US THEIR

RESPONSE WITHIN THE 40 DAYS. PLEASE THEREFORE SPEAK TO THE CHINESE AS SOON AS POSSIBLE AS YOU PROPOSE IN THE SECOND SENTENCE

OF PARA 2 OF YOUR TUR. YOU COULD ALSO EXPLAIN THAT THE UK MUST RATIFY THE MIGA CONVENTION BY EARLY APRIL (PROBABLY ON 12 APRIL)

IN ADVANCE OF THE INAUGURAL MEETING OF THE MIGA COUNCIL OF

GOVERNORS SCHEDULED FOR 16 APRIL, TO ENABLE THE UK TO PARTICIPATE.

3.

IF IT BECOMES CLEAR THAT THE CHINESE ARE NOT GOING TO BE

ABLE TO GIVE US THEIR RESPONSE WITHIN THE 40 DAYS OR EVEN THE TIMESCALE FOR RATIFICATION, WE WOULD NEED TO REFLECT FURTHER IN CONSULTATION WITH ODA. WE WOULD THEN SEND YOU FURTHER

INSTRUCTIONS

HOWE

ON WHAT TO SAY TO THE CHINESE.

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