TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 50

CON FIDENTIAL

HONG KONG PARTICIPATION IN THE COOPERATION AND DEVELOPMENT

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low key exploratory contact with Secretariat being

initiated through UKDel;

careful handling required because of Chinese sensitivity.

Background

The possibility of Hong Kong having some form of

relationship with the OECD was first discussed about 18

Membership would seem a logical conclusion in

months ago.

the context of increasing OECD dialogue with the other dynamic Asian economies. Whilst the nature of Hong Kong's economy suggests they could fairly easily fall into step with the way OECD is presently run, the attraction would probably be limited to the additional anchor that would

provide after 1997.

In the strict legal sense there is considerable doubt that

Hong Kong could become a full member in its own right. Neither would it be acceptable, because of the size of its economy, to join under the umbrella of UK membership. membership would hinge on the interpretation of "Government" in Article 16 of the OECD Convention which states "that

Full

[ OECD] Council may decide to invite any Government prepared

SG2 ACY

CON FIDENTIAL