TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 164

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FM HONG KONG

TO IMMEDIATE FCO

TELNO

1580

OF 070657Z OCTOBER 93

HUC 031/10 нис

per

IRE

1.061 1993

AND TO IMMEDIATE UKDEL IMF/IBRD WASHINGTON, PEKING

AND TO IMMEDIATE UKREP/JLG HONG KONG

57

132612

MDHIAN 8249

UKDEL IMF/IBRD Washington telno.: 332 IBRD/IMF 1997 Annual Meetings:

1. We are pleased to note that the Bank/Fund have come forward with alternative arrangements to make it possible for the 1997 Meetings to be held in HK. And grateful for UKDEL's efforts to achieve this.

2. While the arrangements proposed are not ideal, we agree with UKDEL's judgement that this is the best package we are likely to attain. And that, given the tight timetable, we cannot afford to

Llow the matter to drag on if we want to secure Bank/Fund acceptance of the invitation by the end of this year, and not risk Losing the opportunity for Hong Kong to host the event. We therefore agree to go along with the procedural package suggested in para. 7 of TUR, subject to agreement being reached on the text of the documents mentioned therein.

3. Regarding the points in para. 12 of TUR

(a) Subject to a satisfactory agreement reached on the contents of

the various documents, particularly those to be signed by HK, we would not insist on addressing the HK Letter of support directly to the Bank/Fund.

(b) We would like to see that the framework agreement make it clear that Hong Kong forms an integral part of the invitation. In making cross-reference to Hong Kong on the implementation plan, we should seek to avoid compromising HK's high degree of autonomy.

(c) We prefer that the Chinese letter should simply make it clear

that the expenditure after 30 June 1997 would fall on SARG, but your alternative formulation would be a sensible fallback.

(d) On whether the UK and China assurances on services and

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