Foreign and Commonwealth Office dh

London SW1A 2AH

Telephone 01-

нав

ord

390

RY

270 2677

C Crabbie Esq

UKDEL OECD

Dear Christopher,

Your reference

Our reference

Date

MBLAVT

21 June 1990

Mr

Pa

Holfo 27/6

OLCA

22

18

OECD/DAES FOLLOW-UP

1. Robert Gordon's letter to me of 11 June, reporting the Council Group on Non-Member Economies' meeting of 8 June refers. We have now collated preliminary Whitehall reactions on the Secretary General's paper (C/NM(90)22).

General Remarks

2.

The paper seems to us to take the right line of approach.

Indeed, it is encouraging to see, as reflected by the list of suggested topics for further consideration, that so many ideas emerged from the four workshops.

3.

One of the main pressures behind the continuation of the dialogue is the view of the USA, Canada, Australia, New Zealand, (and no doubt Japan), that Eastern Europe should not absorb too much of the OECD's attention. But to develop the OECD/DAE dialogue success fully, we need to have a clearer definition of objectives and a strategy framework, if maximum value is to be gained on both sides. Certain objectives are of course implicit in some of the topics; examples include increasing knowledge of the DAES, OECD/DAE cooperation and coordination, improved integration of the DAES into

the global economy and the trading system; and preparation for membership/substitute for membership. Clearer objectives would also make the process of establishing priorities between topics more logical. Furthermore, if this does not happen, we risk the exercise losing coordination.

The "Deepening Topics"

4.

We are generally content with the Secretary-General's proposals. The Treasury have indicated that topics D1, D3, D4, D5, D6 would be of special interest to them. The DTI are still consulting colleagues in detail but they have specific comments on topics D7 and D8. They have doubts about the timing of D7, although they accept that it is going ahead. It is too close to the GATT Trade Negotiating Committee meeting in Geneva for much of value to be likely to result from the Paris meeting. It would have needed more planning than we are aware has taken place for positive use to be made of it. But D8

seems a

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