TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 128

BJ Canty Esq, OBE Government House ANGUILLA

270 2572

SGLAIV

March 1990

OECD: EXTENSION AND APPLICATION OF CONVENTION AND INSTRUMENTS

1. We hope soon to be able to take practical steps with the OECD to

ensure that those of the Dependent Territories and Crown Territories

who wish to be bound by the OECD Convention and Instruments are so

regarded. We already recognise the particular concerns of the Channel

Islands, the Isle of Man and Gibraltar in this respect. But we have

not yet sought to sound out other Dependent Territories who may be

interested. I am therefore writing to set out the advantages and

disadvantages involved and to seek your government's considered view

on whether or not it would wish to be bound by the OECD Convention and

Instruments.

Benefits

2.

While circumstances vary greatly, the main advantages of being

bound by the OECD Convention lie in the financial sector.

Chief among

these would be the respectability that derives from submitting to the

disciplines of the two OECD Codes - Liberalisation of Capital

Movements and Invisible Operations, and the National Treatment

Instrument. Coverage by the OECD Convention would oblige OECD member

states to extend to the relevant territories the same benefits they

confer on other OECD states. The advantages for companies or

individuals based in these territories could be significant.

A broker