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E

Secretary-General.

5. It is clear from the individual reports that both sides would like further follow-up. The degree of commitment has varied with the subject under discussion and in some cases it may be thought appropriate to broaden (or narrow, as approriate) the focus of future meetings. But there is now serious questioning of the desire for continuing the dialogue. Korea, not surprisingly, remains the most enthusiastic. Malaysia and Thailand remain interested but reticent. The FCO produced an institutional brief for the UK representatives at the workshops, which contained ideas on

follow-up.

6. The Dialogue generally, and possible next steps, were discussed

at the Council Group on Non-Member Economies on 27 April. Mr Gray's

reporting letter is attached, together with a speaking note on

follow-up which refines further the points outlined in flag E. In essence, the Secretary-General will prepare a paper on follow-up, to

be ready some time in June following reactions by ECSS, the OECD

Ministerial and the DAES themselves; thinking generally appears to be against institutionalisation at this stage, future contacts would probably require more detailed subject-matter; back-to-back meetings

with relevant OECD Committees should be encouraged; the

Secretary-General might want to send a team to the Far East to gauge

DAES' views. Some delegations reported that Korea might want to delay any OECD membership application until the mid-1990s.

Economic Relations Department

May 1990

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