TNAG-2123-FCO40-3029-Internal-financial-situation-in-Hong-Kong-localisation-of-la-1990 — Page 6

+ INTE

MOME

RNATIO

ETARY

AL

FUND

C. Sainty Esq

INTERNATIONAL MONETARY FUND

Hong Kong Department

WASHINGTON. D. C. 20431

Foreign & Commonwealth Office

London SW1A 2AH

100/4

HKC 1.00/4

Dear Mr Sainty,

- 8 OCT 1990

September 20, 1990

Tel aut

KOR please

CER

als

HONG KONG:

LOCALISATION OF LAWS RELATING

TO IMF IBRD. IFC AND IDA

9

CABLE ADDRESS

INTERFUND

Thank you for your letter of 16 August to Martin Jones, and your attached letter of 3 May which we unfortunately did not receive when it was originally sent.

I

You asked whether the Council referred to in Schedule D of the Second Amendment of the IMF Articles of Agreement was ever established. have now spoken to the IMF Legal Department about this. They say that although the Board of Governors has not yet decided to establish the Council, the possibility of the Board of Governors doing so remains. It is unlikely that this would be done at any time soon, but it is possible that it could happen in certain circumstances. For example, the Governors might consider that there was a need for a permanent body constituted at ministerial level to be set up should the IMF take on much greater responsibilities in the organisation of the international monetary system.

With this in mind, the Legal Department suggest that it would be worth including some reference to the Council in the draft legislation on immunities. The reference could make it clear that the Council is not currently in existence, but that it might be created.

I hope this is helpful.

1.5.5

Chris Jarvis

Assistant to the UK Executive Director