TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 37

CONFIDENTIAL

(iv) if there were to be problems during the transition, the Meetings would be an unnecessary complication and would focus international attention on Hong Kong at what might be a bad time; and

(v)

if the new airport is not ready until some time after the meetings, the tourism and related economic benefit would be limited accordingly.

XCC(92)26

THE WAY FORWARD

12

There is no fixed timetable for submitting a formal application to the Bank/Fund, although a decision on the venue of the 1997 Annual Meetings will have to be made not later than 1993. If it is decided to submit a formal application, it will be made by the People's Republic of China and supported by the UK. Hong Kong will participate in the formal sessions of the 1997 Annual Meetings as part of the PRC delegation, using when required the name "Hong Kong, China”.

13

There would be clear advantages in putting in a formal application as soon as possible in order to pre-empt any competing bids, particularly from Australia and Singapore. An early decision on the venue would also enable planning work (especially the booking of conference venues and hotel accommodation) to proceed right away. At the other end of the scale, a decision not to pursue the application further, given the possible disbenefits, could lead to considerable presentational difficulties, not least with the Chinese. We would need to explain, both to the Chinese and to a lesser extent the public, why we have decided to disengage from making a bid, having made a clear expression of interest earlier.

FINANCIAL AND STAFFING IMPLICATIONS

14

Pursuing the bid and filing a formal application would in themselves have no financial or staffing implications. However, acceptance of the bid by the World Bank Group and the International Monetary Fund would commit Hong Kong to very substantial expenditure at a later date. The host government is expected to provide local services and facilities for the Meetings, including a convention hall, meeting rooms, offices for delegations, office supplies and equipment, utilities, telecommunication facilities and local transportation services. There would also be entertainment and social events, part of the cost of which would inevitably fall on the host.

Executive Council