TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 39

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(83

WONE

FUND

EXECUTIVE DIRECTOR

INTERNATIONAL MONETARY FUND

Norman T.I. Chan Esq

WASHINGTON DC. 20431

Mr fichett's

I spoke to the today

on the. They

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consulting lead carriers and will not meet Peretz, deadline of 2.00 pm today. I have injured

Executive Director (Monetary Peretz of this.

Management)

Hong Kong Monetary Authority 3 Garden Road, Central Hong Kong

Dear

My contact in WANA INJ

to yve

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CABLE ADDRESS

INTERFUND

December 2, 1993

Hey

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likely

with the live in this letter, and that they

HKC 031/10 do not God 'relegats' ohan, 1 DEL 1993

real problem.

нис

No

Norman,

Я

Me Whilem.

3/12.

to overrule Legal Adv.

IMF/IBRD ANNUAL MEETINGS, 1997

We shit te prepared

on this paral

I have a comment on FCO telno 1016 to Hong Kong of today's date recording the views of FCO's legal adviser on the wording proposed by the Chinese for para. 7b of the Memorandum of Understanding.

I accept that one interpretation of the proposed wording might be that it gives the impression that China has the authority However, I believe that to tell the SAR how to spend its money.

that China is

On

another entirely reasonable interpretation is legally the member of the IMF and IBRD, and therefore will, in 1997, have responsibility vis a vis the Bank and Fund for ensuring the provision of services and facilities for the Meetings. this interpretation, the text at para. 7b merely confirms (as we for the would wish) that China will delegate responsibility provision of services and facilities to the SAR.

The second point made by the legal adviser about giving Hong Kong sufficient credit for its role does not appear to be a strictly legal matter. In any case, it is not clear to me that the proposed text of para. 7b conveys a substantially different implication on this from the earlier text. I would point out that the proposed text for para. BI of the Memorandum of Provision of Services and Facilities refers specifically to the Hong Kong Government delegating power to the HKMA for provision of services, facilities and funds.

be

A further point is that neither memorandum will public document: indeed they may not even be circulated to the Boards of Directors.