CODE 18-77
Reference
territories (apart from the Channel Islands, Isle of Man and Gibraltar) that the OECD Convention should be extended to them. Has there been some change of view?
3.
Turning now to your minute of 23 March, I suppose we cannot take this much further forward until we see the more detailed document promised by the Channel Islanders (referred to in paragraph 4 of your minute). However, I wonder whether there may be a case for putting in a pre-emptive letter making points (i) (iv) in paragraph 2 above; this
would at the least enable us to discover whether the Channel Islands have the legislation mentioned in point (iv).
4.
As regards the draft attached to your letter of 26 March to Robert Gordon and his reply of 29 March, I have the following comments (on the assumption that we decide to consult territories other than the Channel Islands, Isle of Man and Gibraltar):-
(a) para 1 : delete "and Crown Territories" in the second line: this is not a term of art;
(b) para 2: I was not sure about the sentence beginning "A broker" in the ninth line; do we know that these rather generalised assertions are correct, or would it be better to rely solely on the specific examples which follow in this paragraph and in paragraph 3?
(c) para 4 : is it wise to make this point?; might it look bad if it got to the ears of other OECD Members? If this paragraph is included, the words "were to join the OECD" in the second line should be replaced by: "were to be covered by the OECD rules";
(d) para 5 : after the word "hand" in the first line, we need to add: "Territories will need to pass local legislation to confer privileges and immunities on OECD and those connected with it. Moreover,
(e) para 5 : delete "the Crown Territories and" in the fifth line;
(f) para 7: I agree with Robert Gordon's redraft, although I think the final sentence should begin: "Once it is established that certain DT's are covered by the OECD Convention, ...";
(g) para 8: Given the need for all interested Territories to enact local legislation (point (d) above), I think that the deadline of the end of May is clearly unrealistic.
CA.Warmersley
2
CA Whomersley
Legal Advisers
K171