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MDHIAN 9802
6.
THE CHINESE AND I NOTED THAT WHILE THIS TIMETABLE WAS DIFFICULT, IT WAS ALSO DO-ABLE: AND STRESSED IT · REMAINED THE PREFERENCE OF OUR AUTHORITIES.
7.
WE THEN WENT ON TO DISCUSS TWO OTHER APPROACHES. SHOULD THE FAST TIMETABLE PROVE IMPOSSIBLE:
(A)
(B)
DELAY THE FORMAL LETTERS OF APPLICATION AND BOARD DISCUSSION/GOVERNORS VOTE UNTIL AFTER THE ANNUAL MEETINGS. ONE ADVANTAGE OF THIS WOULD BE THAT THE SECRETARIES COULD TAKE UP ISSUES WITH THE HONG KONG, CHINESE AND BRITISH DELEGATIONS IN WASHINGTON DURING THE ANNUAL MEETINGS, TO SORT OUT ANY POINTS THAT REMAINED OUTSTANDING. THIS WOULD ELIMINATE THE NEED FOR ANY SUBSEQUENT VISIT TO LONDON, THOUGH VAN HOUTVEN STILL FELT HE WOULD NEED TO VISIT HONG KONG AND BEIJING.
SUBMISSION OF THE FORMAL LETTERS OF APPLICATION, AND THEIR CIRCULATION TO THE TWO BOARDS AHEAD OF THE ANNUAL MEETINGS, WITH BOARD DISCUSSIONS AND VOTING LEFT UNTIL AFTER THE ANNUAL MEETINGS.
ZHANG AND I BOTH EXPRESSED SOME PREFERENCE FOR (A) RATHER THAN (B), BUT SAID WE WOULD NEED TO CONSULT OUR AUTHORITIES.
8.
AFTER OUR MEETING DAWSON (US IMF DIRECTOR) SPOKE TO VAN HOUTVEN AND APPEARS TO HAVE GIVEN HIM THE INDICATION OF CLEAR UNEQUIVOCAL US SUPPORT FOR HONG KONG WE HAD BEEN PROMISED. ACCORDING TO THAHANE THIS HAS HELPED CALM VAN HOUTVEN'S NERVES, AND THE TWO SECRETARIES ARE NOW TALKING MORE POSITIVELY ABOUT STICKING TO THE FASTER TIMETABLE. THIS WOULD INVOLVE THEM VISITING HONG KONG ON AUGUST 3-5, BEIJING AUGUST 6-8, AND LONDON ON AUGUST 10--WITH THE BOARD PAPER ISSUING ON AUGUST 15-17.
COMMENT
9.
IT IS CLEAR THAT THIS TIMETABLE IS NOW BECOMING VERY TIGHT INDEED, AND MAY NOT PROVE FEASIBLE EVEN WITH THE GREATEST OF WILLINGNESS ALL ROUND. I AM NOT CLEAR WHETHER THE THREE OUTSTANDING TECHNICAL PROBLEMS (PARA. 3) REPRESENT REAL DIFFICULTIES: HONG KONG MAY BE ABLE TO
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