CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 292
OF 261343Z MARCH 93
AND TO IMMEDIATE PEKING
INFO IMMEDIATE UKDEL OECD
CONFIDENTIAL
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116560
MDHOAN 0835
OECD: JAPANESE PROPOSAL FOR DIALOGUE WITH CHINA
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1. The Japanese have indicated that in the next meeting of the OECD Executive Council in Special Session the Japanese Deputy Foreign Minister will propose that consideration is given to the eventual establishment of an OECD dialogue with China. The Japanese think it is important to get China more closely involved in international economic organisations and to encourage the consolidation of a reformist economic stance. They intend to suggest that in the medium term OECD should consider inviting the Chinese to come and talk about their economic policy and that as a first step OECD might undertake a detailed study of the Chinese economy.
2. The Japanese recognise that there are resource constraints on OECD because of the proliferation of new dialogue partners. They also seem to be flexible about the precise format and nature of Chinese involvement, judging from the approach taken by Saito, Japanese Ambassador at the OECD, when he discussed this with Crowe last week. However, they regard China as so important that the matter needs serious discussion within OECD.
3. We are considering this proposal within Whitehall. The main arguments in favour seem to us to be that it would be useful to expose the Chinese to dialogue on these issues (it might conceivably over time become another factor for restraint over Hong Kong). Against that China is very different both economically and politically from OECD members, and there are very real resource constraints and a problem of precedent if we single China out for special treatment (there are other potential dialogue partners waiting in the wings). One possibility suggested by the OECD Secretariat which appeals to the DTI, is to include China in OECD's existing dialogue with the six dynamic Asian economies (Hong Kong, Singapore, South Korea, Malaysia, Taiwan and Thailand) if this arrangement was acceptable to the Chinese.
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