TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 129

based there could buy and sell freely on behalf of clients throughout

the OECD area; banks wanting to lend money abroad or enterprises

interested in issuing securities in OECD countries could all stand to

gain.

For example, the French recently announced that they will now

allow OECD nationals to issue or introduce securities on the French

stock exchange on the same basis as French and EC Citizens.

have recently been extended to cover cross-border financial

operations, which could make them even more attractive to companies or

individuals based in UK territories.

The Codes

"

3.

There is also a further practical benefit from those OECD

countries who discriminate in their laws, rules or administrative

practice in favour of the OECD. Denmark's mortgage law, for example,

allows for grant loans for the construction of property within the

territories affiliated to the OECD, and the Japanese have easier rules

for institutions from the OECD area seeking to sell securities in

Japan than for those originating outside the OECD.

4. A number of OECD countries apply special rules on the movement of

capital to tax-havens. If these tax-havens were to join the OECD,

they could ensure (under the standstill obligation of the Codes) that

the OECD countries concerned did not tighten these rules, and could

indeed press for their relaxation.