TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 234

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RECEIVED

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SAUC 1993

FM UKDEL IMF/IBRD WASHINGTON

DESK O

TO DESKBY 23090OZ FCO

INT LX

TELNO 246

OF 22230OZ JULY 93

AND TO DESKBY 2209OOZ TREASURY, BANK OF ENGLAND, ODA

AND TO IMMEDIATE HONG KONG

AND TO PRIORITY PEKING, UKREP JLG HONG KONG

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101176 MDHIAN 9802

TREASURY FOR SEDGWICK, CUNLIFFE, FCO FOR TEBBIT (ERD), BANK OF ENGLAND FOR BULLOCH, ODA FOR POWER

1997 IMF/WORLD BANK ANNUAL MEETINGS

SUMMARY

1.

VAN HOUTVEN (IMF SECRETARY) REMAINS RESISTANT TO PROCEEDING ON TIMETABLE TO GET AGREEMENT BEFORE THE SEPTEMBER MEETINGS, THOUGH MAY NOW BE PERSUADED. BUT TIMETABLE LOOKING INCREASINGLY TIGHT. SOME TECHNICAL ISSUES STILL TO BE RESOLVED.

DETAIL

2

I MET THIS AFTERNOON WITH THE CHINESE IMF AND WORLD BANK ALTERNATES (WEI AND ZHANG) AND THE IMF AND WORLD BANK SECRETARIES (VAN HOUTVEN AND THAHANE).

3

THAHANE REPORTED THAT THE TECHNICAL MISSION CURRENTLY IN HONG KONG LED BY FRIIS HAD MADE EXCELLENT PROGRESS, RECEIVED GOOD COOPERATION FROM THE HONG KONG AUTHORITIES, AND HAD REACHED UNDERSTANDINGS ON MANY ISSUES. THE MISSION WOULD RETURN TO WASHINGTON NEXT WEEK. THREE SIGNIFICANT ISSUES REMAINED OUTSTANDING:

(I)

(II)

THE PRECISE DATE. AN END-SEPTEMBER (23-25) DATE WOULD BE NORMAL AND MATCH THE SCHEDULE OF MOST FINANCE MINISTERS. HONG KONG HAD APPARENTLY EXPRESSED A PREFERENCE FOR A DATE AT THE BEGINNING OF SEPTEMBER, WHICH WOULD CAUSE CONSIDEABLE

PROBLEMS.

FURTHER CLARITY WAS NEEDED ON THE FINANCIAL COMMITMENTS OF THE HONG KONG, CHINESE AND UK AUTHORITIES. IT WOULD, I THINK, BE USEFUL TO LET

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