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from the OECD area seeking to sell securities in Japan than for those originating outside the OECD.
Disadvantages
5.
On the other hand, Territories will need to pass local legislation to confer privileges and immunities on OECD and those connected with it. Moreover Territories who want to benefit from OECD Code obligations would have to be subjected to the same disciplines as all the other members. This would mean regular intensive scrutiny by the OECD committees concerned (though in practical terms the UK would probably have to answer on behalf of the Crown Dependencies and the DTs). While the thrust of the Codes' examinations is on liberalisation rather than the regulatory environment, pressure arising on the latter could not be excluded in other fora such as the Fiscal Affairs Committee. The relevant committees could well take a close look at the strict controls which local circumstances require the Channel Islands to impose on non-residents in the area of real estate.
6. I have deliberately covered these pros and cons in fairly general terms. If they whet the appetite of any of the Territories addressed who hitherto have been unaware of the OECD possibilities, I stand by to provide additional information and to field any enquiries. But on most aspects it might be less time-consuming to address enquiries directly to Robert Gordon at UKDel OECD in Paris (telephone: Paris 4524 34. Fax: Paris 4524 8500 - please mark "for the attention of UK delegation"), copying to me.
Procedure
7.
Once it is established that DTS are covered by the OECD Convention certain legal aspects remain to be resolved, in consultation with the OECD Legal Service; but we now need to establish the DTs' wish to be considered as falling into the OECD area, and therefore bound by OECD Decisions and Instruments such as the Codes. It would greatly ease our task of settling this question within the OECD if we could have a simple yes or no answer. Any attempt by individual DTs to argue for special treatment under certain instruments would not only be very difficult to sell to our OECD partners (who would not want to break the tradition of equality of treatment for all) but undermine the obligation from our partners to extend the full range of benefits under the Codes to the territories in question. Once it is established that certain DTs wish to change their status from passive to active OECD membership, we shall need to