TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 170

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1478

OF 160938Z SEPTEMBER 93

HKC 031/10

16 SEP 1993

054401

MDHIAN 5408

PEKEN TOP COPY

AND TO IMMEDIATE UKDEL IMF/IBIRD WASHINGTON, PEKING AND TO IMMEDIATE UKREP JLG HONG KONG

Your telno. 155: Hong Kong 1997 Annual Meetings

Q DIST?

1. On para 3 of TUR on the need for the Bank/Fund to seek endorsement from the UK, we suggest deploying two additional points

(a) HKG has an excellent track record of meeting its (financial) obligations. The very successful hosting of the ADB Annual Meeting, with record attendance for ADB annual meetings, an example in point;

is

(b) the bulk of the expenditure for the hosting of the meetings in HK would be incurred after 30 June 1997, an endorsement by HMG is likely to have limited practical relevance.

2.

On the penultimate sentence in para. 3, please note that LegCo has accepted "financial implications" rather than "expenditure". LegCo noted that substantial financial implications were involved and they noted that an estimate for the cost of the 1991 Bangkok Annual Meetings was HK$200 million. We have to revert to LegCo at a later stage to seek formal funding approval.

3.

Re para. 4 of TUR on whether China should be associated with the MOU, we agree that UKDEL IMF/IBRD should revert to Bank/Fund pressing the case that Hong Kong's signature alone on the MOU would be adequate. That is, there would be no need for UK or China to sign.

4.

As regards para. 5 on visas and immunities, we are generally content with your line.

PATTEN

YYYY

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