TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 75

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increases are to be expected at a later stage in other Directorates. Given that the DAEs are already market economies, the paper does not advocate a new structure for managing the dialogue (along the lines of the Centre for Cooperation with European Economies in Transition). The

and present Liaison Coordination Unit under a Deputy Secretary-General would continue to keep overall control, though they may need strengthening in due course.

8.

The paper does not address the question of priorities. Though some of the proposals have dates, most do not. When asking Whitehall contacts for views on the merits of these proposals,

want also may

obtain a

on steer

the

of degree importance/urgency in each case. This will help us sort out the relative priorities to attach to individual items.

you

to

9. Finally, we should be prepared for trouble from our Pacific

OECD

if (including US and Canada)

we take partners in

too

negative line

a

on the budgetary aspects of the OECD/DAE exercise. Australia, Japan and others will not be slow to point to any perceived "imbalance" between

between the OECD's approach to Eastern Europe and the DAES. This reinforces the need for us to form a view on relative priorities, in case we need to argue for some stretching out of the timetable.

10. Could the Ambassador please have instructions by close of play on 21 June?

Yours en

Rozer

cc (without enclosure)

Chanceries: Seoul

Singapore

Kuala Lumpur Bangkok

Political Adviser, Hong Kong

HKD

FED

110690R3.doc

RA E Gordon

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