TNAG-2123-FCO40-3029-Internal-financial-situation-in-Hong-Kong-localisation-of-la-1990 — Page 11

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2387

OF 310323Z JULY 90

3

YRTELNO 884:

HKC

CONFIDENTIAL

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Copied to Mr Sharpe ERD No comments.

014006

MDLIAN 9563

Rar.

31 JUL 1990

Y

TOP COPY

Q DIST?

HONG KONG: LOCALISATION OF LAWS RELATING TO IMF, IBRD, IFC AND IDA

1. THANK YOU FOR THE ADVICE IN TUR. THERE ARE STILL A NUMBER OF

POINTS ON THE LEGISLATION ON WHICH WE WOULD BE GRATEFUL FOR FURTHER ELUCIDATION FOR THE PURPOSE OF PREPARING DEFENSIVE MATERIAL, AS FOLLOWS:

(A) WE NOTE YOUR ADVICE IN PARA (A) OF TUR THAT THE INCLUSION IN

THE UK ORDERS OF SECTION 7 OF THE ARTICLE ON STATUS, PRIVILEGES AND IMMUNITIES IN THE RESPECTIVE ARTICLES OF AGREEMENT MAY BE

UNNECESSARY OR INAPPROPRIATE. BUT FOR THE PURPOSE OF PREPARING DEFENSIVE MATERIAL, WE WOULD LIKE TO HAVE A CLEAR UNDERSTANDING OF THE PHRASE 'THE OFFICIAL COMMUNICATIONS OF OTHER MEMBERS' IN THAT

SECTION. 'OTHER MEMBERS' OBVIOUSLY MEANS THE OTHER MEMBER STATES OF THE ORGANISATIONS. BUT DO THEIR 'OFFICIAL COMMUNICATIONS' IN THIS

CONTEXT INCLUDE THE OFFICIAL COMMUNICATIONS OF DIPLOMATIC AGENTS OR ONLY THOSE OF COMMERCIAL OF FINANCIAL AGENTS? IN THE FORMER CASE, PRESUMABLY THE RESULT WOULD BE THAT THE SCOPE OF THE PROTECTION AFFORDED BY SECTION 7 WOULD BE THE SAME AS THAT AFFORDED BY ARTICLE

27 OF THE 1961 VIENNA CONVENTION ON DIPLOMATIC RELATIONS. IN THE LATTER CASE, PRESUMABLY NO SPECIAL PROTECTION IS GIVEN IN THE U K TO THE COMMUNICATIONS OF COMMERCIAL OR FINANCIAL AGENTS OF OTHER GOVERNMENTS AND THEREFORE SECTION 7 WOULD NOT REQUIRE SPECIAL PROTECTION TO BE GIVEN TO THE COMMUNICATIONS OF THE FOUR

INTERNATIONAL FINANCIAL ORGANISATIONS.

(B) THE TEXT OF THE RELEVANT ARTICLE IN THE SCHEDULES TO EACH OF

THE ORDERS OMITS SECTIONS 8(II) AND (III). GRATEFUL TO KNOW THE REASON FOR THIS OMISSION. ALTHOUGH IT IS LIKELY TO BE THE SAME AS THAT FOR THE OMISSION OF SECTION 7 STATED IN PARA (A) OF TUR, WE WOULD BE GRATEFUL FOR YOUR CONFIRMATION.

(C) ARTICLE IX OF THE IMF ARTICLES OF AGREEMENT CONFERS IMMUNITY

FROM SUIT AND LEGAL PROCESS ON, INTER ALIA ADVISERS OF ANY OF THE GOVERNORS, EXECUTIVE DIRECTORS ETC. BUT SI 1977/825 DOES NOT COVER 'ADVISORS'. GRATEFUL IF YOU COULD EXPLAIN THIS OMISSION.

CW 2075

2074

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CONFIDENTIAL

Mr

fainty

Please pursue with legal

advisert.

Pru

6/8.

(Peter Materworth)

i