-2-
status on purely trade grounds. But he foresaw problems on two "political" fronts Hong Kong's relationship with China and the claims of the others to a place at the table. This was compounded by the fact that the Trade Committee had always seen observership as a step on the road to OECD membership, which was not applicable in this case.
therefore welcomed Hong Kong's preliminary lobbying which might help deal with their concerns. [Comment: see my letter of 5 July to Andrew Wong.]
He
Hong Kong Workshop
1.
China's participation (or otherwise) had still not been settled. It might be by means of an academic or business representative rather than from government. A late decision would probably help deal with the American's difficulties. [Comment: we subsequently established that this will come to Council for a decision before the summer break. The recent US shift on China and the GATT should help clear the way for some sort of Chinese presence in October.]
Export Credits
8.
On the premia study Abel said that French obstructiveness, especially on risk-based premiums, was largely offset by US and Canadian support for the work. French export credit policy generally remained competition distorting but the Helsinki Agreement was providing something of a brake on their activities.
9. On the A2/A3 bid, Ms West noted that there had been no increase in export credit staff since 1964. The Division was already seriously overworked and needed to do still more on, notably, premia and non-member relations. Work on global untying could not even begin in earnest. Abel added that there was no scope for funding the post from elsewhere in the Directorate although, to help his case, he had insisted on either zero or negative growth in other areas. (For example he was cutting back on consultants even though the Directorate's consultancy budget was already less than that of other comparable directorates). Nor did he see scope for financing the Arrangements Related work from outside the OECD budget, as was the FATF, on the grounds that it was not strictly OECD work (thereby freeing resources for"core" work). Finally, Part II funding of the premia work had been ruled out on the grounds that the outcome might be perceived as biased. [Comment: Abel is potentially painting himself into a corner. On the one hand he is arguing that he cannot manage without the new post; on the other he is determined not to shift Directorate resources if push comes to shove. The risk is that he will convince the Trade Committee that the new post is vital (indeed he has largely done so already); then if he fails to win resources from outside his Directorate the Committee will insist that low priority "mainstream" work is dropped to finance it. Given the general dissatisfaction with the high-handed way in which Abel has handled this year's budget round there are those who would take considerable satisfaction in seeing him hoisted by his own petard in this way.]
/Decentralised