TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 52

CONFIDENTIAL

HKC

03119

CONFIDENTIAL

FM UKDEL IMF/IBRD WASHINGTON

TO IMMEDIATE FCO

TELNO 326

OF 20230OZ SEPTEMBER 92

AND TO IMMEDIATE HM TREASURY, HONG KONG, PEKING

AND TO IMMEDIATE JLG HONG KONG

см

pa

46

044226

MDHIAN 9813

HM TREASURY FOR PICKERING

144

MY TELNO. 316: LBRD/IMF ANNUAL MEETINGS 1997 IN HONG KONG

1.

FURTHER TO PARA. 4 OF TUR, I TOGETHER WITH THE HONG KONG DELEGATION (CHAN AND LAU) DULY MET THE CHINESE SIDE ON 19 SEPTEMBER TO DISCUSS HONG KONG'S ROLE IN THE 1997 MEETINGS. THE CHINESE SIDE WAS LED BY CHI HAI-BIN, ALTERNTE GOVERNOR, VICE MINISTER, MINISTRY OF FINANCE.

2.

CHAN NOTED THAT HONG KONG APPROACHED THE MATTER IN A POSITIVE SPIRIT. THE PROJECT WOULD INVOLVE CONSIDERABLE FINANCIAL AND PLANNING RESOURCES PRE-1997, WITH THE BULK OF DISBURSEMENT FALLING AFTER 1997. PROCEDURALLY HKG WOULD NEED TO APPROACH THE LEGISLATIVE COUNCIL FOR THE VOTING OF FUNDS BEFORE A FORMAL INVITATION COULD BE ISSUED TO THE BANK/FUND. ALTHOUGH HONG KONG DID NOT ENVISAGE PLAYING A LEADING ROLE, IT WAS IMPORTANT FOR HONG KONG TO PLAY A CLEARLY VISIBLE ROLE COMMENSURATE WITH THE AUTONOMY ENJOYED BY THE HKSAR AND THE CONSIDERABLE RESOURCES DEVOTED BY HONG KONG TO THE PROJECT. THERE WAS THEREFORE A NEED TO CLARIFY WHAT CHINA HAD IN MIND FOR A PROPER ROLE BY HONG KONG AND WHAT WAS INVOLVED IN A HONG KONG MODEL.

3

CHI COMMENTED THAT CHINA AS THE SOVEREIGN POWER WOULD BE PLAYING THE LEADING ROLE AND HE NOTED THAT THERE WAS AGREEMENT ON THIS POINT. WHILE HE AGREED THAT HONG KONG SHOULD PLAY A POSITIVE AND PROPER ROLE, THE DETAILS OF HOW THIS WAS TO BE ACHIEVED COULD BE DISCUSSED IN DUE COURSE AFTER CHINA HAD SUBMITTED THE FORMAL APPLICATION.

4.

AFTER FURTHER DISCUSSION, HOWEVER, CHI ACCEPTED THE NEED TO REACH SOME UNDERSTANDING ON HONG KONG'S ROLE BEFORE A SUBSMISSION WAS MADE TO THE LEGISLATURE. AT CHI'S SUGGESTION, WE AGREED TO LET THE CHINESE SIDE HAVE SOME

1

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