TNAG-2815-FCO40-4061-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 93

ifl.rb/Oct 93/22.10.1

6.

RESTRICTED

The outcome is a complex package of texts:

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1

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an

overarching MOU signed by the Fund/Bank and UK and

Chinese Governors (the UK with responsibility up to

1 July 1997, the Chinese thereafter);

a letter of invitation

from the Chinese Governor

(because the meetings will take place after

1 July 1997);

a letter of support from the UK Governor, transmitting

the HK authorities' financial and other assurances

the

provision

1 July 1997;

on

of the necessary services pre-

a letter from the Hong Kong authorities to you asking

you to transmit their assurances on provision of

services to the Fund;

the

an MOU between the HK authorities and the Fund/Bank on

detailed provision of services and the financial

obligations of the respective parties.

7.

still

We are still negotiating on the detail of these texts, which

raise some difficult issues in relation to Hong Kong's

autonomy.

But Hong Kong is still very eager to have the meetings

in 1997 and will in the end accept the texts. FCO Ministers are

content to proceed on this basis.