Comment

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5. A study of the sort envisaged is entirely consistent with our desire to see OECD working on China, provided it can be accomplished within the existing budget envelope without interfering with other, higher priorities; and provided it is not allowed to escalate into some sort of outreach exercise by default (and we can probably rely on the US to keep the lid on that!). The DAFFE (characteristically) seems to have a better idea of what it would be trying to take on than did the Trade Directorate and their track record for this sort of work is good; but China is arguably a much more difficult subject with which to get to grips and we should hold the Secretariat to their proposal to involve delegations closely throughout. I hope that we shall also be able to engage some of the reservoir of expertise which is available in Hong Kong.

Cual 22

Alastair Newton 5 December 1993

cc: Mr Thomas

Mr Craddock

Mr Gill - ITP/2b, DTI

Ms Naylor

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(by fax)

ITP/1a, DTI

Mr Morgan SIS2, HMT Mr Williams

H03, BOE

Ms O'Connell ERD, FCO Ms Wright ITP/2c, DTI Mr Johnson - ECTR/3, DTI Dr H Booth di Giovanni Mr Davies FED, FCO

HKD, FCO

Mr A Wong

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Hong Kong

ES/2, DTI

Hong Kong Office to the GATT, Geneva (c/o Mr Young - UKMis, Geneva)

Chancery Peking

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