XCC(93)57
11
Rather substantial sums were involved for past overseas Annual Meetings of the Bank/Fund (HK$120 million for the 1988 Berlin Meetings and HK$200 million for the 1991 Bangkok Meetings). But Hong Kong's experience with the hosting of the 1992 Annual Meeting of the Asian Development Bank (ADB) suggests that we should be able to be more cost- efficient than others in the hosting of such international meetings. The cost of the 1992 ADB meeting in Hong Kong was under HK$7 million, compared with HK$30 million for the 1991 ADB Annual Meeting in Vancouver. While this cannot obviously form the basis even for a rough estimate of the cost that may be involved, it is hoped that the expected expenditure for the 1997 Meetings should, comparatively speaking, be more modest than the outlay for other Bank/Fund Meetings.
12
We also intend to be very active in securing sponsorship in order to reduce the cost of the Meetings to Government. We will consider following the example of Madrid in setting up a limited company to be responsible for the planning of the Meetings, which would facilitate negotiations over sponsorship and procurement.
13
Separately, we have considered whether the hosting of the 1997 Meetings would fall within the ambit of the Exchange Fund. As Members may be aware, the Exchange Fund (Amendment) Ordinance 1992, which came into effect on 1 April 1993, provides for the establishment of the Hong Kong Monetary Authority (HKMA) (funded by the Exchange Fund) and expands the purpose of the Fund by stipulating in section 3(1A) of the amended ordinance that "in addition to using the Fund for its primary purpose, the Financial Secretary may, with a view to maintaining Hong Kong as an international financial centre, use the Fund as he thinks fit to maintain the stability and the integrity of the monetary and financial systems of Hong Kong".
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The Monetary Authority is responsible, inter alia, for the development of Hong Kong's contacts and cooperation with multilateral and central banking institutions, including the World Bank and the IMF. The hosting of the 1997 Bank/Fund Annual Meetings would clearly serve to strengthen Hong Kong's tie with, and participation in, the activities of the Bank/Fund. We also believe that the 1997 Meetings would enhance Hong Kong's status as an international financial centre and the holding of the Meetings in Hong Kong shortly after 30 June 1997 would be likely to give a considerable boost to local and international confidence in Hong Kong. That is, it would help to maintain both the stability of our monetary and financial markets and hence the status of Hong Kong as an international
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