HKK 091/ RECEIVED IN ANGUSTA KP. 51 2 5 NOV 1983
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OECD: DEVELOPMENT CENTRE
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Mr Just Faaland, the President of the Development Centre is calling on you at 11 am on Friday, 25 November. I will make myself available.
2. I understand that his main purpose is to brief you about the programme of the Centre, which is to be discussed at a half day meeting on 1 December (I had not thought to involve you in this). I am awaiting instructions from the ODA, which will not be available by Friday. In general however you need only take note at this stage (but see paragraphs 4ff below).
3. Mr Faaland may also say something about the Development Centre Budget. We have, with a due show of reluctance, agreed to the current proposals, which involve no addition to the budget, but some redeployment into extra manpower. We have however made clear that the ODA, who fund this part of the UK contribution to the OECD budget, do not expect to make up next year the resources foregone for the sake of manpower this. There may be a chance also to say something of our preference for short term attachments and consultants rather than for immovable permanent staff.
Hong Kong and China
4.
The Development Centre proposed earlier this year a research project on the implications for the Chinese economy of the so called Special Economic Zones". This was to have included an assessment of China's aid needs. We drew attention to the sensitivity of the project as a whole, and objected specifically to this assessment since it had implications both for resource flows through Hong Kong and for the wider discussion of assist- ance to China through IDA. A modest project was defined which, though not without points of difficulty, could scarcely be opposed. It enjoyed widespread support, including from Japan.
5. As it is to be presented on 1 December however, the project, while retaining much that is recognisable and acceptable from
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CONFIDENTIAL