TNAG-2473-FCO40-3600-Asian-Development-Bank-liabilities-of-Hong-Kong-1992 — Page 72

CONFIDENTIAL

DRAFT TELEGRAM BY MRS RADICE

PRIORITY

ADDRESSED TO HONG KONG

ENCLOSURES 024

-

DISTRIBUTION: MONETARY,

IFID

HONG KONG DEPARTMENT

SIR J COLES

MR BURNS

(? plus other copy recipients of incoming telegram)

Return to Room Number V708

FROM: Peter Freeman, Head of International Division, ODA

YOUR TELNO. 1022: POSSIBLE ASIAN DEVELOPMENT BANK LENDING FOR FINANCING OF AIRPORT CORE PROGRAMME (ACP) PROJECT

Summary

We would be opposed to any pressure being put on the Asian Development Bank to lend to Hong Kong for this project.

Detail

2.

We are not happy about the suggestion that the ADB should lend on any terms to Hong Kong, nor that you or we should participate in a lobbying exercise to persuade the ADB to make an exception to their usual rules. At US$11,540 Hong Kong's GNP per capita is far above that of other non-borrowing East Asian Countries (eg South Korea and Taiwan) and even further above the informal cut-off point of circa US$4,400 beyond which we consider that regional member countries should have "graduated" - that is to say, be in a position to borrow on commercial markets rather than from the ordinary capital resources of the ADB. Approval of your proposal would weaken the UK's stance on general

CONFIDENTIAL