CONFIDENTIAL
CONFIDENTIAL
FM FCO
HKC031/10
16 SEP 1993
ť
TO IMMEDIATE UKDEL IMF/IBRD WASHINGTON TELNO 155
OF 131635Z SEPTEMBER 93
AND TO IMMEDIATE HONG KONG, PEKING UKREPJLG HONG KONG
53
045010
MDHOAN 7943
the in
Tel fel
вел
OUR TELNO 149: HONG KONG 1997 ANNUAL MEETINGS
1. In para 4 of TUR we undertook to reply to you on the question of an endorsement. Our Legal advice is that it would be necessary to explore what is intended by quote endorse unquote but there may be a danger that an endorsement would carry the same risk of contingent liability as a guarantee.
2.
Before we consult Ministers on the way forward we think it would be worthwhile for you to establish whether there is any possibility of the Bank/IMF being flexible over their request for a UK/PRC guarantee or some form of endorsement in view of our concerns at Hong Kong's unique circumstances. Although you have explained our position to them before, we think that it would be worth one further effort to persuade those concerned to adapt their requirements in this case.
3. Subject to any further points from Hong Kong or Peking, we would therefore be grateful if you would seek a further meeting with Bank/IMF secretaries setting out again Hong Kong's autonomy on economic and financial questions (which will under the Basic Law continue to apply after July 1997), its strong financial position, and our desire not to do anything repeat anything in the transition period which may undermine Hong Kong's current or future autonomy. While recognising that the institutions would normally seek an assurance from the Member in whose country the meetings were to be held, you should point out that it is inconceivable that Hong Kong would not pay for the meeting (expenditure has already been accepted in principle by Hong Kong's Legislative Council). You should ask the Bank/IMF to take into account our difficulties and make an exception to the approach set out in the talking points handed over to you by Thahane on 9 August.
4. Our Legal advice on the question of the signature of the Memorandum of Understanding is that it is in binding form and
PAGE
1
CONFIDENTIAL
No comments yet.
Private notes are available after approval.