TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 133

CONFIDENTIAL

HKC 031/9

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 698

OF 06102OZ MARCH 92

ст

AND TO IMMEDIATE UKDEL IMF/IBRD WASHINGTON, PEKING AND TO IMMEDIATE UKREP JLG HONG KONG

a

20

146225

MDHIAN 5806

UKDEL IMF/IBRD WASHINGTON TELNO 70 AND FCO TELNO 35: 1997 IMF/IBRD ANNUAL MEETINGS.

THE EXECUTIVE COUNCIL HAS NOT YET CONCLUDED ITS DELIBERATIONS ON THE SUBJECT AND WE ARE PREPARING ANOTHER SUBMISSION FOR ITS CONSIDERATION ON 17 MARCH. MEANWHILE WE HAVE SOME COMMENTS ON THE CHINESE RESPONSE REPORTED IN TUR.

2 =

THEIR POSITIVE RESPONSE IN PARA 1 OF TUR IS REASSURING. AS

REGARDS THE ATTACHMENT OF A HONG KONG OFFICIAL TO THE CHINESE IMF/IBRD OFFICE POST-1997, WE WOULD NEED TO CONSIDER FULLY THE IMPLICATION OF SUCH AN ATTACHMENT, TOGETHER WITH THE SUGGESTION OF A PRE-1997 ATTACHMENT TO THE UKDEL IMF/IBRD OFFICE. IT WOULD BE HELPFUL IF WE COULD HAVE VIEWS ON THE TIMING OF THE POSSIBLE ATTACHMENT AND ALSO THE ROLE OF THE HK REPRESENTATIVE. PARA 2(D) OF UKDEL TELNO 22 SUGGESTED THAT THE HK REPRESENTATIVE WOULD DEAL SPECIFICALLY WITH THE 1997 ANNUAL MEETINGS WHEREAS THE WORLD BANK SECRETARY'S SUGGESTION TO THE CHINESE WAS THAT AN ADVISER BE APPOINTED FROM HONG KONG TO ENSURE HK'S INTEREST ON A LONG-TERM BASIS (PARA 1(D) OF OUR TELNO 132).

3.

WE NOTE THAT THE CHINESE HAVE NOT COMMENTED ON THE SUITABILITY OF THE BERLIN MODEL AS A PRECEDENT FOR THE 1997 MEETINGS. THIS IS AN IMPORTANT ISSUE CONCERNING HONG KONG'S ROLE

IN THE MEETINGS. WE WILL REVERT TO YOU ON THIS AND OTHER POINTS WHICH WE SUGGEST SHOULD BE RAISED BY UKDEL IMF/IBRD WITH THE CHINESE ONLY AFTER WE HAVE OBTAINED EXCO'S STEER LATER THIS

MONTH.

4"

ON THE QUESTION OF WHO SHOULD ISSUE THE FORMAL INVITATION (PARA 2 TO 7 OF TUR), WE HAVE NOTED THE ARRANGEMENT FOR THE BERLIN MEETINGS BUT FEEL THAT TO SUGGEST TO THE CHINESE A TRIPARTITE INVITATION (PARA 3(D) OF TUR) MIGHT HAVE THE 'THREE- LEGGED STOOL CONNOTATIONS AND IS UNLIKELY TO BE ACCEPTABLE TO THE CHINESE. WE THEREFORE DO NOT RATE HIGHLY OUR CHANCES OF BEING

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