TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 255

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FM HONG KONG

INDEX

REGISTRY

TA

Action Taken

TO IMMEDIATE FCO

TELNO 1030

20

007052 MDHIAN 6426

OF 25095OZ JUNE 93

AND TO IMMEDIATE UKDEL WASHINGTON, PEKING, UKREP JLG HONG KONG

1997 WORLD BANKIME ANNUAL MEETINGS

13

MY TELNO 703 OF 5 MAY 1993

SUMMARY

1. ON 18 JUNE, THE FINANCE COMMITTEE (FC) OF THE LEGISLATIVE COUNCIL ACCEPTED IN PRINCIPLE THE FINANCIAL IMPLICATIONS OF HONG KONG HOSTING THE 1997 ANNUAL MEETINGS OF THE BANK/FUND. THE WAY IS NOW CLEAR FOR FORMAL INVITATIONS TO BE SENT TO THE BANK/FUND.

DETAIL

2.

IN GIVING THE APPROVAL, THE FC ALSO NOTED THAT THE FINANCIAL IMPLICATIONS COULD NOT BE ASSESSED WITH ANY CERTAINTY AT THIS STAGE, BUT COULD BE OF THE ORDER OF HK DOLLARS 200 MILLION. A FURTHER SUBMISSION WITH DETAILED ESTIMATES WILL NEED TO BE MADE TO FC NEARER THE TIME.

3.

IT WOULD BE NECESSARY TO INFORM FORMALLY THE CHINESE SIDE OF FC'S APPROVAL (ALTHOUGH THEY WOULD PROBABLY HAVE READ ABOUT IT IN LOCAL PRESS REPORTS). MORE IMPORTANTLY, IT WOULD BE NECESSARY TO WORK OUT AS SOON AS POSSIBLE THE TERMS OF THE INVITATION LETTERS TO BE ISSUED BY CHINA, UK AND HK, POSSIBLY WITH INPUT FROM THE BANK/FUND JOINT SECRETARIAT.

WE PROPOSE THAT UKDEL IMF/IBRD APPROACH THE CHINESE EXECUTIVE DIRECTORS ON THE ABOVE TWO POINTS AND TO DISCUSS THE TERMS OF THE DRAFT INVITATION LETTERS IN CONSULTATION WITH THE BANK/FUND AS

APPROPRIATE.

5.

WE SUGGEST ALSO THAT THE CHINESE SIDE BE INFORMED BY UKREP JLG IN PARALLEL ALONG THE FOLLOWING LINES

(A) FC APPROVAL ON 18 JUNE FOR HK TO HOST THE 1997 MEETINGS:

(B) THE NEED TO PREPARE FORMAL LETTERS TO BE SENT BY THE THREE PARTIES TO THE BANK/FUND AS ENVISAGED EARLIER:

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