TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 86

CONFIDENTIAL

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MDLIAN

(C)

(D)

4.

FROM THE U.K. (AND HONG KONG) GOVERNMENTS):

WHILE IT IS NOT POSSIBLE AT THIS STAGE TO ESTIMATE THE COST OF THE 1997 MEETINGS TO HONG KONG, GIVEN THE COST OF THE 1988 BERLIN MEETINGS (HKD 120 MILLION) AND THOSE IN BANGKOK IN 1991 (HKD 200 MILLION) IT CAN BE EXPECTED TO BE SUB- STANTIAL. THE CHINESE SIDE IS THEREFORE REQUESTED TO NOTE THAT THE BULK OF THE EXPENDITURE FOR THE EVENT WOULD OF NECESSITY BE INCURRED AFTER 30 JUNE 1997 AND WOULD THEREFORE FALL TO BE MET BY THE HONG KONG SPECIAL

ADMINISTRATIVE REGION GOVERNMENT:

AND

WHEN WE HAVE REACHED A SATISFACTORY RESOLUTION OF THE

POINTS ABOVE, THE HONG KONG GOVERNMENT WILL THEN NEED TO OBTAIN THE APPROVAL OF THE FINANCE COMMITTEE OF THE

LEGISLATIVE COUNCIL BEFORE SUBMITTING A FORMAL APPLICATION BANK/FUND. THIS IS BECAUSE WE CANNOT UNDERTAKE ANY

SUBSTANTIAL FINANCIAL COMMITMENT WITHOUT THE PRIOR APPROVAL OF THE FINANCE COMMITTEE.

ON PARA 3(B) ABOVE, WE ARE OF COURSE HAPPY TO BE ASSOCIATED WITH THE FORMAL APPLICATION. HOWEVER, WE NOTE FROM PARA 2 OF UKDEL IMF/IBRD'S TELNO 70 THAT THE CHINESE PROPOSAL WAS FOR THE FORMAL INVITATION TO COME FROM CHINA, SUPPORTED ONLY THE U.K. PERHAPS UKDEL COULD CLARIFY THIS POINT WITH THE CHINESE, BUT WE WOULD NOT WISH TO INSIST SHOULD THEY HAVE DIFFICULTIES WITH THE IDEA.

5. FOR YOUR INFORMATION ONLY, EXCO ALSO NOTED CHINA'S ASSURANCE OF FREE ENTRY OF DELEGATES INTO HONG KONG, WHICH WAS GIVEN IN RESPONSE TO WORLD BANK SECRETARY THAHANE'S REQUEST TO BEIJING. WHEREAS CHINA MIGHT BE SEEING ITSELF ''IN LOCO PARENTIS'' FOR THE FUTURE SAR GOVERNMENT, EXCO WAS CONCERNED THAT UNDER THE JOINT DECLARATION IT IS THE SAR GOVERNMENT ITSELF, NOT/NOT CHINA, THAT DETERMINES THE ENTRY OF PERSONS INTO HONG KONG. SOME MEMBERS FELT THAT THIS WAS SUCH AN IMPORTANT POINT OF PRINCIPLE THAT IT SHOULD BE EMPHASISED TO THE CHINESE. HOWEVER THE CONCLUSION WAS THAT DESPITE THE POTENTIAL SIGNIFICANCE OF THIS POINT IN MANY CONTEXTS, SINCE THE EXCHANGE HAD BEEN BETWEEN THE BANK AND THE CHINESE DIRECT, WE SHOULD NOT GO OUT OF OUR WAY TO TAKE ISSUE WITH THE POINT UNLESS IT WAS MADE MORE DIRECTLY TO US.

6.

ON THE QUESTION OF A PRE-1997 HONG KONG ATTACHMENT TO THE UKDEL IMF/IBRD OFFICE (PARAS 3 AND 4 OF TUR), WE WILL THINK

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