TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 62

UNCLASSIFIED

UNCLASSIFIED

FM SEOUL

TO TELELETTER FCO

TELELETTER CH.

OECD

OF 210044Z JUNE 90

INFO TELELETTER UKDEL OECD PARIS, SINGAPORE, KUALA LUMPUR, INFO TELELETTER HONG KONG

FROM:

R M JACKSON, SEOUL

057134

MDTTAN 2552

BANGKOK

FOLLOWING FOR: M BOURKE ESQ, ERD, FCO

COPIED TO:

UKDEL OECD PARIS, SINGAPORE, KUALA LUMPUR, BANGKOK POLITICAL ADVISER HONG KONG

OECD/DAE FOLLOW-UP

1. I HAVE JUST SEEN ROBERT GORDON'S LETTER TO YOU OF 11 JUNE, ASKING FOR INSTRUCTIONS BY CLOSE OF PLAY ON 21 JUNE. ON ONE POINT, A VIEW FROM SEOUL MIGHT BE USEFUL.

2. I SEE THAT PRIVATISATION APPEARS AMONG THE SUGGESTIONS OF BROADEN-

ING TOPICS. I WONDER WHETHER IT MIGHT NOT BE BROADENED A LITTLE ITSELF. KOREA (AND OTHER DAES?) HAS A LONG TRADITION OF INTERVENTION- IST GOVERNMENT. THIS IS NOT JUST A DEVELOPMENT OF THE LAST 30 YEARS OF INDUSTRIAL GROWTH: IT RESTS ON CENTURIES OF AUTHORITARIAN RULE. THE MARKET-PLACE IS OVER-REGULATED AND CARTELISED. APART FROM ANY- THING ELSE, THIS GIVES MANY OPPORTUNITIES TO THE PROTECTIONIST FORCES HERE. THERE IS ONLY A VERY SMALL CONSTITUENCY FOR PROPONENTS OF COMPETITION, DE-REGULATION ETC. IT WOULD BE IN OUR INTERESTS TO SEE THIS INCREASED. BUT THE ENLIGHTENED FEW MAINLY THOSE EDUCATED OVER- SEAS AND PROBABLY INCLUDING THOSE ATTENDING THE WORKSHOPS REALLY DO NEED HELP IN GETTING THE MESSAGE OVER TO THE MAN IN THE STREET, CONSUMERS ETC, PAST THE ENTRENCHED INTEREST GROUPS WHO STAND TO LOSE FROM IT.

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3. COULD THE OECD AND, WITHIN ITS MEMBERSHIP, THE UK AS OCCUPYING A PRE-EMINENT POSITION ON DEREGULATION ETC OFFER HELPFUL

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GUIDANCE? IT WOULD NOT SO MUCH BE EXPOUNDING THE ACADEMIC ECONOMIC THEORIES OF THE BENEFITS OF FREE TRADE. CASE STUDIES OF THE 'THIS WORKED FOR US' KIND, HIGHLIGHTING THE ECONOMIC BENEFITS AND POLITICAL PRACTICALITIES, WOULD BE EVEN MORE USEFUL.

4

D

IF PEOPLE THINK THERE MIGHT BE ANYTHING IN THIS, THE MODALITIES

1

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