BJ Canty Esq, OBE Government House ANGUILLA
270 2572
SGLAIV
March 1990
OECD: EXTENSION AND APPLICATION OF CONVENTION AND INSTRUMENTS
1. We hope soon to be able to take practical steps with the OECD to
ensure that those of the Dependent Territories and Crown Territories
who wish to be bound by the OECD Convention and Instruments are so
regarded. We already recognise the particular concerns of the Channel
Islands, the Isle of Man and Gibraltar in this respect. But we have
not yet sought to sound out other Dependent Territories who may be
interested. I am therefore writing to set out the advantages and
disadvantages involved and to seek your government's considered view
on whether or not it would wish to be bound by the OECD Convention and
Instruments.
Benefits
2.
While circumstances vary greatly, the main advantages of being
bound by the OECD Convention lie in the financial sector.
Chief among
these would be the respectability that derives from submitting to the
disciplines of the two OECD Codes - Liberalisation of Capital
Movements and Invisible Operations, and the National Treatment
Instrument. Coverage by the OECD Convention would oblige OECD member
states to extend to the relevant territories the same benefits they
confer on other OECD states. The advantages for companies or
individuals based in these territories could be significant.
A broker