RESTRICTED
!
HVLPS 041/3
L6 DEL 1993
RESTRICTED
FM UKDEL OECD PARIS
TO IMMEDIATE FCO
TEL NO O69
OF 02180OZ DECEMBER
AND TO IMMEDIATE HONG KONG
DISTOP COPY
Q DIST ? /
INFO IMMEDIATE UKREP JLG HONG KONG, PEKING
INFO ROUTINE UKMIS GENEVA
83
86
125124
MDHIAN 5446
HONG KONG TELNO 1814 TO FCO (NOT TO ALL): OECD/HONG KONG
SUMMARY
1. OECD COUNCIL WERE EXPECTING HONG KONG'S APPLICATION FOR TRADE COMMITTEE OBSERVERSHIIP TO BE ON THEIR 9 DECEMBER AGENDA.
CAN ASSURE DELEGATIONS THAT IT WILL BE TAKEN AT THE FOLLOWING MEETING (16 DECEMBER OR 14 JANUARY) PROSPECTS FOR PROCESSING THE APPLICATION SUCCESSFULLY WILL BE DAMAGED, POSSIBLY BEYOND REPAIR.
DETAIL
2.
HONG KONG HAVE ASKED FOR A VIEW ON THE PROS AND CONS OF ALLOWING THE PROCESSING OF THEIR APPLICATION FOR OBSERVER STATUS ON THE OECD TRADE COMMITTEE TO GO AHEAD FOLLOWING CHINA'S REQUEST FOR BILATERAL DISCUSSIONS. HONG KONG'S LETTER OF 24 NOVEMBER HAS BEEN CIRCULATED TO MEMBERS OF THE OECD COUNCIL WHO WERE TOLD IT WOULD BE ON THEIR 9 DECEMBER AGENDA.
3.
THE ATTITUDE OF THE CHINESE AUTHORITIES HAS ALWAYS BEEN SEEN AS A POSSIBLE STUMBLING BLOCK (SEE, FOR EXAMPLE, MY LETTER OF 21 OCTOBER 1992 TO EHRMAN, THEN POLITICAL ADVISER TO THE GOVERNOR). AGAINST THIS BACKGROUND, THE NON-APPEARANCE OF THIS ITEM ON THE AGENDA FOR THE 9 DECEMBER MEETING IS BOUND TO RAISE QUESTIONS IN THE MINDS OF AMBASSADORIAL COLLEAGUES, AS I NOTED IN MY 26 NOVEMBER LETTER TO TEBBIT (ERD) - NOT TO ALL. IF THE REASON FOR THE WITHDRAWAL GETS OUT THOSE WHO WERE WORRIED ABOUT THE IMPLICATIONS OF HONG KONG'S OBSERVER STATUS POST-1997 WILL FEEL THAT THEIR CONCERNS HAVE BEEN VINDICATED. THIS CAN ONLY REDUCE THE CHANCES OF HONG KONG ULTIMATELY BEING SUCCESSFUL IN ITS BID.
4.
THE QUESTION NOW IS TO CONTAIN THE CONSEQUENT DAMAGE TO THE LOBBYING AND OTHER PREPARATIONS HERE BY THE HONG KONG AUTHORITIES AND