TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 199

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HM Treasury

K Tabbit Esq

ERD, Room WH414

Foreign & Commonwealth Office

LONDON

SW1

TED

Parliament Street London SW1P 3AG Telephone 071-270

20 August 1993

2001

Dear Kevin,

1997 WORLD BANK/IMF ANNUAL MEETINGS IN HỌNG KONG

I am

You asked for comments on the draft telegram to UKDel IMP. I sorry to have missed your meeting earlier this week.

I am not sure that the letters of invitation issue is potentially the most important. Arguably, compromising Hong Kong's financial autonomy and landing "HMG with a contingent liability could be equally difficult. I suggest redrafting the first sentence of paragraph 1 to read as follows:

"Our provisional thinking on outstanding technical issues identified in TUR: date of meetings, visas/immunities and (potentially most important) form of assurance on agreed financial contributions and letters of invitation. Instructions on last point."

I suggest swapping the order of paragraphs 4 and 5 in the current draft to reflect the change to the summary paragraph above.

I think we here gave up hope some weeks ago of meeting the

fast timetable and settling matters before the Annual IMP/World Bark meetings. David Peretzīs clear view before he went on leave was that even if the outstanding issues could be resolved, there was insufficient time for the necessary steps in the process to be completed before the Annual Meetings. "As far as I know, the Fund and Bank Secretaries have still to visit Hong Kong. Moreover, as you know the process

is in two stages: Fund/Bank staff issue a Board paper covering the letters of "invitation which is then followed by discussion in the Boards of both institutions. David Peretz's judgement, with which I concur, was that the process should not straddle the Annual Meetings. As there is no chance of a Board discussion before the Annual Meetings, the letters of invitation should not issue until after the meetings.

I do not know if you intend to submit to FCO Ministers and, if so, when. But we will not be able to submit to the Chancellor until his return in early September.

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