TNAG-2123-FCO40-3029-Internal-financial-situation-in-Hong-Kong-localisation-of-la-1990 — Page 14

CONFIDENTIAL

3

055527

MDLOAN 3497

CONFIDENTIAL

FM FCO

TO PRIORITY HONG KONG

TELNO 884

OF 02110OZ MAY 90

НКС HKC 100/4

RECL

11 MAY 1990

TRY

NISTRY

Go Taken

YOUR TELNO 1328 HONG KONG: LOCALISATION OF LAWS RELATING TO IMF, IBRD, IFC AND IDA

1.

WE HAVE THE FOLLOWING ANSWERS TO THE QUESTIONS IN TUR:

(A) WE ARE NOT AWARE THAT ANY QUOTE PARTS OF SECTION 6 UNQUOTE ARE OMITTED FROM ANY OF THE ORDERS. GRATEFUL FOR

CLARIFICATION SECTION 7 IS OMITTED IN EACH

OF THE ORDERS BECAUSE IT DOES NOT RELATE TO A MATTER ON WHICH LEGISLATIVE PROVISION IS NECESSARY: RATHER IT IS SIMPLY AN OBLIGATION NOT TO DISCRIMINATE, WHICH WE WOULD NOT DO IN ANY EVENT. JUST BECAUSE THE ORDERS ARE DESIGNED TO IMPLEMENT CERTAIN ARTICLES OF THE VARIOUS AGREEMENTS DOES NOT MEAN THAT ALL SECTIONS OF THOSE ARTICLES HAVE TO BE INCLUDED IN THE ORDERS: IN SOME CASES, AS WITH SECTION 7, THIS MAY BE UNNECESSARY OR INAPPROPRIATE. PROVISIONS CORRESPONDING TO SECTION 7 APPEAR IN MANY INTERNATIONAL AGREEMENTS ON PRIVILEGES AND IMMUNITIES, BUT WE ARE NOT AWARE THAT THEY HAVE EVER BEEN INCLUDED IN UK LEGISLATION: PERHAPS YOU COULD TELL US WHICH LEGISLATION YOU ARE REFERRING TO.

(B) WE AGREE THAT, ALTHOUGH THE PHRASE MENTIONED IS NOT DEFINED IN THE UK LEGISLATION, IT WOULD BE CLEARER TO DEFINE IT IN HONG KONG'S LOCALISED LEGISLATION. AS TO YOUR SPECIFIC QUESTIONS, THE PHRASE DOES NOT COVER THOSE WHO ARE PERMANENT RESIDENTS IN THE HOST STATE: MOST MODERN AGREEMENTS DO, BUT THESE DO NOT, PROBABLY BECAUSE THEY ARE SO ANCIENT. OUR VIEW IS, THEREFORE, THAT THE PHRASE DOES COVER BRITISH NATIONALS EVEN IF NOT PERMAMENTLY RESIDENT IN HONG KONG, BUT NOT NON-BRITISH NATIONALS, EVEN IF PERMANENTLY RESIDENT IN HONG KONG.

(C) WE AGREE WITH YOUR CONCLUSION, BUT NOT WITH YOUR REASONING AS TO SI. 1977/825. THIS ORDER WAS MADE UNDER BOTH THE BRETTON WOODS AGREEMENT ACT 1945 AND THE INTERNATIONAL ORGANISATIONS ACT 1968, AND SINCE THE 1968 ACT HAS NO PROVISION ALLOWING ORDERS MADE UNDER IT TO BE EXTENDED TO DEPENDENT TERRITORIES, IT SEEMS THAT INSOFAR AS THIS ORDER WAS MADE UNDER THE 1968 ACT (WHICH

1

PAGE

CONFIDENTIAL