CODE 18-77

Mr Powell, HKD

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Reference....

Q

AŁCITR

CUSTOMS CO-OPERATION COUNCIL AND HONG KONG

1. I spoke to Mrs

contribution to the

2.

Heald of Customs and Excise about Hong Kong's CCC if she were to become a member.

Mrs Heald told me that the contribution to the CCC is based on country's contribution to the United Nations (which is based on GNP etc). However, she did not know the exact details of how the contribution was worked out.

Of course the fact that Hong Kong is not a member of the UN makes it more complicated.

3.

She also told me that:

--

a)

b)

c)

3.

it

there is a minimum contribution payable by each country of 0.2 % of the CCC's annual budget. A large number of countries pay just the 0.2 %. These countries include Singapore and South Korea which I understand have economies comparable with Hong Kong. In 1983/84 this 0.2% amounted to Belgian F544,580 (approximately £7,670 on today's exchange rate).

only very few countries pay more than 1% of the CCC's budget and these are the big, industrialised countries of Western Europe, Australia,

Australia, Japan, Canada and

and the United States, etc. In 1983/84 the UK paid

5.35% of the CCC's budget which amounted to £186,000. In 1984/85 we paid 5.53 % of the CCC's budget which came to £207,000.

contributions vary

each year depending on the CCC's budget (which inevitably increases each year) and, for those not paying the minimum, the economic performance of the country concerned.

Given the above, I think that we should tell Hong Kong that is probable that they will only have to contribute the CCC's budget. In any case, it is highly have to contribute more than 1 % of the

minimum, ie 0.2% of the unlikely that they would budget.

19 February 1985

Jone Am.

Jane-Ann Klowak Hong Kong Department

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