TNAG-2515-FCO40-3669-Future-of-Hong-Kong-International-Rights-and-Obligations-Sub-1992 — Page 88

21TT29Z

COMMENT:

RESTRICTED

FM UKDEL IMF/IBRD WASHINGTON

TO PRIORITY FCO

TELNO 139

OF 09230OZ APRIL 92

AND TO PRIORITY PEKING, HONG KONG, UKREP JLG

HONG KONG TELNO 943

1997 IMF/IBRD ANNUAL MEETINGS

1.

NKC 031/9

TUR NOTES THAT THE EXECUTIVE COUNCIL MAY DISCUSS THIS ISSUE AGAIN ON APRIL 14 AT THE EARLIEST. MAY I EMPHASISE AGAIN THE DESIRABILITY OF RESPONDING IN ONE WAY OR ANOTHER TO THE QUESTION THE CHINESE HAVE ASKED BEFORE THE SPRING IMF/IBRD MEETINGS IN WASHINGTON ON APRIL 27-28. IF WE HAVE NOT RESPONDED BY THEN, THE CHINESE ARE CERTAIN TO WANT TO TAKE THAT OPPORTUNITY TO SEEK TO DISCUSS THE ISSUE WITH THE CHANCELLOR OF THE EXCHEQUER OR THE GOVERNOR OF THE BANK OF ENGLAND.

2.

I CONTINUE TO BELIEVE THAT IF I RAISE THE BERLIN PRECEDENT AGAIN WITH THE CHINESE HERE, IN THE WAY SUGGESTED IN TUR, IT WILL BE INTERPRETED AS A SIGN OF COLD FEET. A POSSIBLE WAY TO SOFTEN THE MESSAGE WOULD BE TO INDICATE THAT THE BERLIN MODEL IS A MORE IMPORTANT MATTER FOR US THAN THE QUESTION TO WHO, FORMALLY, SHOULD ISSUE THE INVITATIONS: AND THAT IF SATISFACTORY UNDERSTANDINGS COULD BE REACHED ON THE BERLIN MODEL, THEN WE MIGHT CONSIDER AGREEING TO THE CHINESE SUGGESTION THAT THE FORMAL APPLICATION SHOULD BE MADE BY CHINA, WITH A SUPPORTING LETTER FROM THE UK AND HONG KONG ADMINISTRATION.

см

3.

ON THE TIMING OF A PRE-1997 HONG KONG ATTACHMENT TO THE UKDEL IMF/IBRD OFFICE, I SUGGEST THIS IS SOMETHING TO RAISE AFTER IT IS AGREED THAT THE 1997 MEETINGS SHOULD BE IN HONG KONG. I HAVE TO GET AGREEMENT FROM RELEVANT COMMITTEES OF DIRECTORS OF THE FUND AND BANK TO THE REQUIRED INCREASE IN UKDEL STAFF. ONCE THE DECISION ON THE 1997 MEETINGS IS MADE, I WILL BE ABLE TO SAY THAT THE ADDITIONAL STAFF MEMBER IS NEEDED TO HANDLE (FROM THE UK OFFICE, UP TO JUNE 1997, AND FROM THE CHINESE OFFICE THEREAFTER) THE WORK INVOLVED IN PREPARING FOR THE 1997 MEETINGS, AND THAT THE INDIVIDUAL CONCERNED WILL ALSO HANDLE OTHER MATTERS CONCERNING RELATIONS BETWEEN THE BANK AND IMF AND HONG KONG. (IN PRACTICE, THE MAIN SUCH ISSUE IS THE ANNUAL ARTICLE IV CONSULTATIONS WITH THE IMF.)

4.

I DOUBT WHETHER, INITIALLY AT LEAST, THIS WOULD CONSTITUTE A FULL TIME JOB, AND WE MIGHT INVESTIGATE WHETHER IT IS POSSIBLE TO SHARE A MEMBER OF STAFF WITH THE HONG KONG ECONOMIC AND TRADE OFFICE IN WASHINGTON.

PERETZ

YYYY

ΜΑΙΝ

145

MONETARY

130

ERD

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