TNAG-2473-FCO40-3600-Asian-Development-Bank-liabilities-of-Hong-Kong-1992 — Page 29

19

24/

COVERING

Mr Furness!

که عرضه مستم

Ц

2819

GNFIDENTIAL

ADB.

р.а.

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Reference

нив

HAB 102/1

From: MRS J C RADICE

Date: 27 APRIL 1992

CC Mr. Stone Help

38

Ms Diana Brookes

w/o

enclosures

FCO Legal Advisers

Room K158

HONG KONG: POSSIBLE ASIAN DEVELOPMENT BANK LENDING FOR FINANCING OF AIRPORT CORE PROGRAMME PROJECTS

1. I attach copies of Hong Kong telegram number 1022 of 9 April and of our reply number 668 of 16 April.

2. Mr Freeman, who sent the reply, will be leaving London on Friday evening for Hong Kong to lead the UK Delegation to the Annual Meeting of the Asian Development Bank. While he is in Hong Kong he may be asked about this matter, or wish to discuss it. In particular he has asked me to check the position on counter-guarantees in the Asian Development Bank as applied to dependent territories. Paragraph 5 of FCO telegram number 668

refers.

3. Article 3.3 of the Agreement establishing the Asian Development Bank reads as follows:

"In the case of associate members of the United Nations Economic Commission for Asia and the Far East which are not responsible for the conduct of their international relations, application for membership in the Bank shall be presented by the member of the Bank responsible for the international relations of the applicant and accompanied by an undertaking by such member that, until the applicant itself assumes such responsibility, the member shall be responsible for all obligations that may be incurred by the applicant by reason of admission to membership in the Bank and enjoyment of the benefits of such membership. "Country" as used in this Agreement shall include a territory which is an associate member of the United Nations Economic Commission for Asia and the Far East."

From this wording it seems clear to me that the British Government would have to give a counter-guarantee for any public sector loan from the Asian Development Bank to Hong Kong. But I presume that this point can be clarified only by reference to the undertaking which must have been provided by the UK to the Asian Development Bank when Hong Kong joined it in 1969.

14.