TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 63

JVENIEU DUVJE

金融司辦公廳

香港兑憋道十八號 海富中心第二座二十四樓

CONFIDENTIAL

* TEL: 529 0015

本署橘號 OUR Ref

G 8/1/3C (89) III

來图檔號 YOUR RER

(424)

SECRETARY FOR

MONETARY AFFAIRS OFFICE

24TH FLOOR.

ADMIRALTY CENTRE TOWER 2, 18 HARCOURT ROAD,

HONG XONG.

031/9

7 August 1991

By fax: (202) 477 1736

Mr. J. B. Radifera,

Chief,

Official Borrowing Operations,

Financial Operations Department,

The World Bank,

1818H Street N.W.,

Washington D.C. 20433,

U.S.A.

Dear Mr. Radifera,

p.c

Pl1 #Ek is no

already

an

file- the

file cancerned is the

one canturing correspondence

World Bank Bunwiy

You may recall that at our meeting December 1990 in Hong Kong, I promised to come back to you on whether or not the PRC's consent would be required at the time of issue for bond issues maturing after 1997.

on 5

We have asked our legal advisers to study the Articles of Agreement carefully. Our conclusion is that the relevant provision governing the issue of bonds by the Bank is Section 1(b) of Article IV. have not been able to identify any provision in the Articles of Agreement which lends support to the suggestion that the redemption of such bonds on maturity require the consent of the Member concerned. We therefore cannot see any legal reason why the Bank should need to seek the permission of the Member before it could discharge its obligations. It follows that there is No legal requirement to seek the approval of the PRC Government before issuing bonds