CONFIDENTIAL

3

4. (contd)

a regional Associate Member whereas the UK is a non- regional member, and the distinction is of growing importance in ECAFE nowadays. Territories of much lesser importance and economic status than Hong Kong have recently become Associate Members. There would thus be severe practical difficulties in representing Hong Kong's point of view on the wide range of issues that arise. We would very much hope to avoid such a situation.

5.

There is a cognate problem of hosting ECAFE meetings. So long as Taiwan was a member of ECAFE Hong Kong refrained from offering herself as host, in order to avoid confrontation with China. Until we see which way the Chinese cat is going to jump it would seem prudent to continue the practice, even though Taiwan is no longer an issue in ECAFE.

6.

We should be glad to hear what you think.

Yours con Dimiston

(T JB George)

CC

R C Samuel Esq Peking

Esq

B G Smallman/CVo

Bangkok

RS Gorham Esq

Tokyo

CONFIDENTIAL

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