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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