TNAG-2123-FCO40-3029-Internal-financial-situation-in-Hong-Kong-localisation-of-la-1990 — Page 19

CONFIDENTIAL

024133

MDLIAN 5895

PRECISE SCOPE OF THE HONG KONG (LEGISLATIVE POWERS) ORDER 1989. WE WOULD ALSO RELY ON IMPLIED REPEAL RATHER THAN REVOKE S.I. 1976 NO. 221 OR S.I. NO. 825 UNLESS YOUR LEGAL ADVISERS PERSUADE US TO THE CONTRARY. LEGAL ADVICE HERE IS THAT THERE WOULD BE NO NEED FOR A SAVING FOR ANYTHING DONE UNDER ANY OF THOSE ORDERS.

(D) OUR LEGAL ADVISERS HAVE ASKED IF YOU CAN EXPLAIN THE APPARENT DISCREPANCY BETWEEN S.I. 1977 NO. 825 AND ARTICLE IX OF THE IMF AGREEMENT. ARTICLES 6 AND 7 OF THE ORDER CONFER IMMUNITY FROM SUIT AND LEGAL PROCESS ON ALL OFFICERS, EMPLOYEES, COUNCILLORS, ALTERNATES AND ASSOCIATES OF THE FUND WHILE THE SOCIAL AMENDMENT (1976) TEXT OF ARTICLE IX OF THE IMF AGREEMENT CONFER SUCH IMMUNITY ON ''ALL GOVERNORS, EXECUTIVE DIRECTORS, ALTERNATES, MEMBERS OF COMMITTEE, REPRESENTATIVES APPOINTED UNDER ARTICLE XII, SECTION 3 (J), ADVISORS OF ANY OF THE FOREGOING PERSONS, OFFICERS AND EMPLOYEES OF THE FUND''. SHOULD WE FOLLOW THE ORDER INSTEAD OF THE IMF AGREEMENT?

·

(E) ON A SMALL DRAFTING POINT, OUR DRAFTSMAN HAS POINTED TO THE INCLUSION OF THE PHRASE ''TO ENABLE THE FUND ETC IN ARTICLE 2 OF S.I. 1946 NO. 36 AND ITS OMISSION FROM ARTICLE 3 OF S.I. 1955 NO.

1954 AND S.I. 1960 NO. 1383. WE ARE INCLINED TO INCLUDE THE PHRASE

IN RESPECT OF ALL FOUR ORGANISATIONS UNLESS YOU SEE ANY OBJECTION.

3. GRATEFUL FOR YOUR VIEWS ON THESE POINTS SO THAT OUR DRAFTING CAN PROCEED APACE.

WILSON

YYYY

DISTRIBUTION

66

ΜΑΙΝ

63

.HONG KONG AGREEMENT

.(RESTRICTED)

ERD

LIMITED

HKD

HD/FED

RESEARCH D (FE)

PUSD

ADDITIONAL

3

PAGE

NEWS D

PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

MR CARRICK

2

CONFIDENTIAL

MR WHOMERSLEY LEGAL ADVISERS MS BARRETT LEGAL ADVISERS MR FIFOOT LEGAL ADVISERS

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