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5.
My Canadian colleague (Michael Berry) wondered whether it would not be to mutual benefit to speed up
up Hong Kong's integration into the OECD machinery.
machinery. The Japanese Ambassador (Hiroaki Fujii) warmly supported him. HK had much to offer to the rest of the OECD membership by way of free-market example. All accepted that full membership would pose problems, not least with the Chinese. But was there not an interest in involving HK on a more regular basis in certain OECD committees, particularly the Trade Committee and the Committeee on Financial Markets? Fujii saw this as a logical consequence of HK's insurance policy for post-1997. HK had already achieved full membership of GATT; it had secured Chinese agreement to HK's participation in the IMF post-1997 and to Art IV consultations; it was only logical to complete the international picture with a more rounded relationship with the OECD.
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6. Sir D Wilson acknowleged that HK would profit from a frank discussion with OECD partners on subjects such as the post- Uruguay Round agenda; pressed by Berry, he admitted that the Chinese would be unlikely to object to such an arrangement. Nor had they raised HK's wider relationship with the OECD with the HK Government. But HK was particularly short-staffed on the financial side, and already found difficulty in fielding representatives to existing meetings. He was not sure they could take on further commitments in this area. Paye warned that full membership of OECD committes should not be rushed. It would be best to proceed in small steps; Sir D Wilson agreed.
7.
I ought to note too that the Governor showed keen interest in Paye's appreciation of the chances of an early economic transformation in Central and Eastern Europe (generally bleak).
8. On leaving, Sir D Wilson invited Paye to visit Hong Kong (the most senior OECD visit to date has been that paid by Makoto Taniguchi, Deputy Secretary-General, last July). The Secretary- General's Chef de Cabinet has subsequently told me that Paye who had found the dinner very useful would be happy to take up the invitation at some convenient time (perhaps en route to Tokyo for his annual pre-Ministerial Council consultations next spring?)
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9. It is clear that the two chief players, the Governor and the Secretary-General, are generally satisfied with
with the present not to say stately pace of the OECD/DAE dialogue. But we were surprised by the vigour of the Japanese and Canadian RESTRICTED
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