TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 77

From:

HKC 031/10

Extn:

Date:

1 DEC 1993

di Mr Seddon, ERD.

3/11

CC:

HUD.

M A Power

0155 Room V710 2 November 1993

PS/Mr Lankester Mr AinscOW Mr Hudson

Mr Manning (0/r) Mr Muir

E

Mr Chakrabarti Ms Cund

Mr Whitney, HKD

PS/Lady Chalker

IMF/WORLD BANK 1997 ANNUAL MEETINGS : HONG KONG

Problem

Hong Kong is bidding to host the 1997 IMF/World Bank Annual

Meetings. It will need to incur expenses (primarily staff costs

for the planning team and advance hire of conference facilities) before the July 1997 handover to China. As the metropolitan power, HMG will probably need to guarantee that Hong Kong will

provide the services, and thus accept something akin to a contingent liability of around £3.5mn. Should ODA share this liability jointly (ie up to £1.75mn) with the Treasury?

Recommendation

2.

Provided other elements of the package can be resolved

satisfactorily, Hong Kong remains very keen to host the meeting, an objective which has full FCO Ministerial backing. If it

becomes necessary for HMG to accept a contingent liability, we

should agree to share this jointly with Treasury. Aid Policy and

Finance Departments concur; and Mr Ainscow has endorsed the

approach.

/ Background..

73