TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 3

CONFIDENTIAL

XCC(92)26

8

The UK and Chinese Executive Directors subsequently made joint and informal approaches to the Bank/Fund expressing an interest in the possibility of holding the 1997 Annual Meetings in Hong Kong. The managements of the Bank/Fund were very receptive to the idea.

9

Between 13-16 September 1991, a technical mission from the Bank/Fund visited Hong Kong to study the feasibility of holding the Annual Meetings here. On completion of its visit, the technical mission concluded that the facilities in Hong Kong (the Hong Kong Convention and Exhibition Centre, hotels, local transportation, airport, telecommunications, and venue for social events) would be adequate for holding the 1997 Annual Meetings, provided that the question of providing 750 temporary offices for use during the Annual Meetings was resolved satisfactorily. This will have to be thrashed out, but should not be an insurmountable problem.

10

Separately the UK and Chinese Executive Directors lobbied several key players through their Executive Directors at the Bank/Fund (including the US, the EEC, Japan, Australia and Singapore - the latter two being possible contenders as host of the 1997 Meetings). These lobbying efforts were supplemented by parallel action through diplomatic channels in certain capitals. On 1 October, the UK and Chinese Executive Directors issued a joint memorandum to the Executive Directors at the Bank/Fund to notify them of the UK/PRC's joint interest in inviting the 1997 Annual Meetings to Hong Kong. So far the reaction has been favourable.

IMPLICATIONS FOR HONG KONG

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A number of benefits and some possible disbenefits to Hong Kong if the 1997 Bank/Fund Annual Meetings were held here have been identified.

(a) The benefits are -

(i)

the hosting of this prestigious event in Hong Kong could underline and enhance Hong Kong's status as an international financial and banking centre. The fact that the Meetings were being held after the transfer of sovereignty would be likely to boost both local and international confidence in Hong Kong;