572

Ruff

Mr Rough, ERD

(41

OECD/HONG KONG: PROBABLE APPLICATION TO PARTICIPATE IN THE WORK OF THE TRADE COMMITTEE

1.

Thank you for your minute of

Mr MacInnes letter of 24 May to Mr Tebbit.

2.

inviting comments on

You may recall that there was an exchange of correspondence between DTI and HKD in December 1992 on the issue of closer links between Hong Kong and OECD. At that time DTI were concerned that after 1997 Hong Kong would be part of China, and that the conduct of its external relations could be expected to reflect and advance Chinese interest.) HKD's view was, and remains, that it would not be consistent with the Government's policy towards Hong Kong to question Hong Kong's commercial autonomy after 1997, and that it is incumbent on HMG to support a closer relationship with OECD if this is in the interests of Hong Kong's continued economic and social stability. I attach a copy of my minute of 8 December to Ms O'Connell.

3. I suggest that when Mr MacInnes meets Mr Wong he should say that HMG would support in principle a formal application from Hong Kong to engage in the work of the Trade Committee as a participating observer. He might ask Mr Wong whether HKG would follow up with applications to participate in the "horizontal" work of the Trade Committee, and whether the HKG had considered whether to brief the Chinese in advance of any application, and the likely Chinese reaction.

He right who erqué

have

NC G Whitney

Hong Kong Department

WH 304 270 2651

2 June 1993

CC

*

REC

INDE.

HKB

091/3

15 JUL 1993

rou.min.ADM

SLM

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