TNAG-2473-FCO40-3600-Asian-Development-Bank-liabilities-of-Hong-Kong-1992 — Page 20

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the donors' report. But its impact will continue to be limited while the majority of the poorest people in the region cannot benefit from it.

One of the aspects of the Bank's

of the Bank's work on which its Management should be congratulated is its integration of environmental concerns into the project appraisal process. There is, however, scope for taking this further, particularly in analysing the costs and benefits of more efficient uses of energy in comparison with new investments. I know that the Bank, like most of the International Community, is closely following preparations for the UN Conference on Environment and Development

the "Earth Summit" - in Rio de Janeiro next month. We hope that UNCED will reach agreement on a programme - known as Agenda 21 on how the world should be guided towards future national and international action towards sustainable development. We have promised to provide new and additional resources for a replenishment of the Global Environment Fund to help meet the incremental costs of compliance with the international conventions. The UK firmly believes that the Asian Development Bank is ideally placed to take full account of Agenda 21 and the other UNCED conclusions when designing its future programmes. For national and regional programmes we think the Bank, with its intimate knowledge of conditions in its member countries, is better placed than any new institution could be for early and appropriate action.

To be able to play a full part in the region's economic development, the Bank needs to have sufficient resources. The President has indicated that he will be inviting the Board of Directors to consider the adequacy of its capital base,' and a possible fourth general capital increase. We shall look at the proposals carefully. The Bank has established a strong record, and its shareholders have confidence in its operational programmes. Its projects are of course a means, not an end in themselves. The quality of those projects, their sectoral distribution and their effective and timely implementation have an impact on economic and social development. That is why the work of the Post-Evaluation Office is so important a tool for the Bank's management and its shareholders. And the Bank's expertise can often be a valuable resource for developing member countries in its own right, with or without a lending operation. We hope that the Board will give more attention to these aspects of the Bank's work, alongside its consideration of new projects and the size of the lending

programme.

Finally I should like to offer

to offer my congratulations to President Tarumizu on his re-election last November.

I and my colleagues in London look forward to fruitful cooperation with the Asian Development Bank in the years which lie ahead.