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CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 1743

OF 04085OZ JUNE 90

INFO PRIORITY_UKDEL OECD, UKREP JLG HONG KONG, PEKING

177657 MDLIAN 6126

нив едер

RE.

. 1990

int

RY

·åken

YOUR TELNO 1062 : OECD MEMBERSHIP

1. WE AGREE GENERALLY WITH THE HELPFUL ANALYSIS IN TUR. OUR OWN THINKING ON THE QUESTION OF ACTUAL MEMBERSHIP (FULL OR ASSOCIATE) REMAINS THAT THIS SHOULD BE PLAYED VERY LONG. WE HAVE LITTLE TO GAIN FROM FORMALISING OUR RELATIONSHIP WITH OECD IN THIS WAY AND MUCH TO LOSE FROM TRYING - SEE PARA 2 BELOW). WE HAVE BEEN PARTICIPATING ACTIVELY IN THE PROCESS OF OECD/DAE DIALOGUE AND HAVE JUST RECEIVED AN INVITATION TO ATTEND A MEETING IN JULY TO BE HELD IMMEDIATELY AFTER THE OECD TRADE COMMITTEE MEETING. WE INTEND TO RESPOND POSITIVELY TO THE INVITATION AS THIS SHOULD PROVIDE A USEFUL PRECEDENT FOR MORE TRADE-RELATED MEETINGS. WE ARE INCLINED TO LET THIS INFORMAL PROCESS CONTINUE TO EVOLVE BEFORE CONTEMPLATING ANY MORE FORMAL STATUS FOR HONG KONG.

2. WE AGREE ALSO WITH THE THRUST OF YOUR ANALYSIS THAT THE KEY TO THE QUESTION LIES IN THE CHINESE ATTITUDE. AS THINGS STAND AT THE MOMENT WE BELIEVE THAT THEIR ATTITUDE WOULD BE NEGATIVE AND SUSPICIOUS. TO PUT THE QUESTION TO THEM IN THE PRESENT CLIMATE WOULD BE TOO RISKY. WE CAN ASSUME DIFFICULTIES BEING RAISED BY THE CHINESE. IF SO THE EXERCISE WOULD BACKFIRE. IF THE CHINESE REACTED NEGATIVELY, AND IF THIS BECAME KNOWN TO OTHER OECD MEMBERS, IT WOULD WELL AFFECT THE LATTER'S PERCEPTION OF THE DEGREE OF TRADE AND ECONOMIC AUTONOMY WHICH HONG KONG WILL ACTUALLY EXERCISE. THE DIFFICULTIES SURROUNDING HONG KONG'S MEMBERSHIP OF APEC HAVE ALREADY THREATENED TO CAUSE PROBLEMS IN THIS REGARD.

WILSON

YYYY

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