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CR-ER-PECT
لمند
TRMDE DEPT
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362 789 2435 P.03
I LOCATION OF APEC SECRETARIAT
DGT said that Hong Kong had been lobbied by South Korea, Singapore and Thailand. South Korea had assisted Hong Kong's entry into APEC and Hong Kong owed the Koreans a favour. However, there were practical difficulties, including language problem, which also applied to Thailand. On balance, Singapore stood out as the best candidate. He had thus indicated to the brokers that Hong Kong was in favour of Singapore's bid to host the APEC Secretariat.
2.
Qin said that China also favoured an ASEAN capital. Even though Indonesia was not keen, it was still a difficult decision to choose between Bangkok and Singapore. He recognised that Singapore had offered a better package, but there were other factors for consideration. He had yet to receive instructions from capital on which one to choose. It was, however, likely that China would give an indirect indication to the brokers on her preference.
FUNDING
3.
DGT said that the amount Hong Kong was required to contribute to the APEC fund did not pose a problem for Hong Kong financially. He was, however, concerned about the principle involved. The PECC formula was inequitable. Hong Kong favoured determination of contributions from APEC members by reference to GNP. Hong Kong would be prepared to negotiate a scale of contribution on the basis of Option B.
4.
Qin commented that China also favoured Option B although this would mean a contribution of more than 10% of the budget, instead of 8.33% under Option C. China was not concerned about the amount of contribution. It was also the principle that mattered. The GNP approach was simple and clear, and provided an objective standard. Moreover, Option C grouped APEC members by classes and this was objectionable. He welcomed the modified Option B floated by DGT in the working lunch today.