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Donor coordination

17.

By comparison with

with arrangements

for other major aid

recipients there is little donor dialogue and coordination and

there is no institutional mechanism to facilitate such

dialogue/coordination such as a Consultative Group hence the

informal OECD discussion referred to in para 13.

Issues for discussion

18.

Given the size of our aid programme, the scope for using it

to exert leverage in negotiations with China is prima facie very

limited.

19.

Nevertheless

our programme offers some opportunities to

further HMG's Hong Kong objectives, through promoting

institutional links between China and Hong Kong, and through its

general influence on opinion leaders and institutions in China, for example by encouraging the economic reform process and market

concepts. However we should not overestimate its potential

influence.

20. We might consider whether we can make greater use of Hong Kong as a source of expertise for our programme.

VIETNAM

21. Our aid programme to Vietnam is heavily influenced by Hong

Kong considerations. The major objectives of the programme are to support efforts to encourage economic migrants to return from Hong Kong, to persuade potential boat people not to leave and to encourage a cooperative attitude on the part of the Government

of Vietnam.

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