TNAG-1768-FCO40-2522-Hong-Kong-and-the-Multilateral-Investment-Guarantee-Agency-(-1988 — Page 92

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JAN. 29 '88 17:18 IMF 2026234662

BRITISH EMBASSY

3100 Massachusetts Avenue NW Washington DC 20008

Telex Domestic USA 89.2370/89-2384

Telex International 64224(WUII/440015(ITT)

Telephone (202) 482-1340

W Birrell Esq (by FAX)

IFID

ODA

Eland House London

Dear Walter,

MIGA

Your reference

Our reference

Da January, 1988

P.02

Good

Thank you for your letter of 26 January regarding representation on the Board: Mr. Voss is studying and will respond as soon as possible. I attach his memo in response to your enquiries over UK ratification procedures for dependent territories.

2.

With regard to Anita Higginbottom's letter of 27 January, the Bank is not legally entitled to hold the Instrument pending the Royal Assent, but we agree that the idea to pre-position is a sound one, and we would be glad to hold the necessary papers here in UKDEL.

3.

Switzerland is expected to ratify the Convention next week since all the legislative procedures have been completed without a hitch.

No others are in sight. The French cannot ratify until the Assemblé convenes on April 5: Voss now considers it unlikely that France will be represented at the inaugural Council of Governors' meeting.

The US Administration has asked the Bank to assist them in their efforts in "making progress on Congress' conditions". However, as yet, there is no strategy devised on how to proceed. Matt Hennessey hopes to meet with Shihata next week to try to work out a basis for agreement. Although he would like to involve G7 EDs in some, as yet unspecified, fashion, MIGA management have so far discarded this route. The Japanese have apparently made it clear that they could not join any lobbying effort of this kind. Another complicating factor is that France and Italy (besides ourselves) are effectively sidelined since they have not yet ratified. The US cannot submit its instrument of ratification with conditions (reservations) attached, Such conditions could only be adopted following consideration by the Council or Board neither of which as yet exists. In addition, payment for shares must follow ratification within 90 days, so the message is clear - the US must sort out its internal differences and difficulties in order to proceed with ratification. A lot will depend upon the definition of "signs of progress". Both Voss and Hennessey now consider US ratification is unlikely before the end of February,

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