TNAG-2080-FCO40-2960-Hong-Kong-politically-sensitive-issues-1991 — Page 54

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Issue

Objective/explanation

12

CONFIDENTIAL

Present status/progress

China

interest*

UK

interest*

Secretary for Monetary Affairs (Cont'd)

International Monetary Fund (IMF) Article IV

Consultations for Hong Kong

U.S. information and reporting requirements on

banks

We

Such consultations involve IMF staff conducting a mission to Hong Kong on an annual basis to discuss with Hong Kong Government officials Hong Kong's exchange arrangements. see the commencement of such consultations a normal evolution of Hong Kong's existing working relationship with the IMF. But the Chinese consider such the establishment of a new relationship which is

We can not

unnecessary.

see any grounds for their objection.

The Kerry Amendment to the U.S. Anti-Drug Abuse Act, the Advanced Notice on Proposed Rulemaking on International Payments and some of the proposed legislation in the recent U.S. Senate Subcommittee Report on Drug Money Laundering, Banks and Foreign Policy cause concern because of

A statistical mission from the IMF visited Hong Kong from 31 May - 8 June 1990 to collect background and statistical information on Hong Kong's economic and trade systems in preparation for the actual consultation to be held in the coming October. The present plan is to inform the Chinese in July 1990 that we have decided to accept an October Article IV mission. The Chinese may revert before then.

In connection with the Kerry Amendment, the Americans' response on alternative information. exchange arrangement provided in the context of the draft model agreement for the purpose of designation under section 28 of the Drug Trafficking (Recovery of Proceeds) Ordinance is awaited.

Ag.

X

X

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