TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 90

CONFIDENTIAL

FM PEKING

TO PRIORITY F C O

TELNO 818

OF 040708Z JUNE 90

CONFIDENTIAL

177330

MDLIAN 60547

T 090/2

14]

TRY

**** 1990

STRY

INFO PRIORITY HONG KONG, UKREP JLG HONG KONG, UKDEL OECD

axen

YOUR TELNO 1062 TO HONG KONG: OECD MEMBERSHIP.

1. WE SHARE THE ASSESSMENT IN PARAS 7 AND 8 OF TUR. THE CHINESE WOULD BE LIKELY TO SEE ANY PROPOSAL THAT HONG KONG SHOULD BECOME A MEMBER OF THE OECD IN TERMS OF A FURTHER ATTEMPT TO ''INTERNATIONALISE'' THE QUESTION OF HONG KONG. AS WELL AS THE POSSIBILITY OF THEIR TAKING EXCEPTION TO THE EXCLUSIVITY OF THE CLUB AND NATURE OF ITS MEMBERSHIP, FURTHER REASONS FOR CHINESE OPPOSITION COULD BE BASED ON THE GROUNDS (A) THAT MEMBERSHIP WOULD NOT BE OPEN TO CHINA HERSELF AND (B) THAT MEMBERSHIP OF OECD WOULD BE INCOMPATIBLE WITH HONG KONG'S NON-SOVEREIGN STATUS. SOME INTERMEDIARY FORM OF ASSOCIATION, RATHER THAN FULL MEMBERSHIP, MIGHT BE LESS UNPALATABLE TO THE CHINESE PROVIDED THIS MET THEIR CONCERNS OVER THE QUESTION OF SOVEREIGNTY AND THE CASE, IN TERMS OF BENEFIT ACCRUING TO HONG KONG BEFORE AND AFTER 1997, WAS SUFFICIENTLY STRONG.

2. IF WE WERE ABLE TO PUT TOGETHER A PROPOSAL WHICH SATISIFIED OECD LEGAL REQUIREMENTS, WAS LIKELY TO OVERCOME THE POLITICAL OBJECTIONS ON THE PART OF EXISTING MEMBERS AND ADDRESSED LIKELY CHINESE CONCERNS OF PRINCIPLE, WE SEE NO REASON WHY WE SHOULD NOT FLOAT THE IDEA WITH THE CHINESE. BUT WE SHOULD BE UNDER NO ILLUSION THAT THE CHINESE WOULD FIND ANY SUCH PROPOSAL READILY ACCEPTABLE.

GRATEFUL FOR A FURTHER COPY BY BAG OF RICHARDSON'S LETTER REFERRED TO IN PARA 1 OF TUR.

3.

DONALD

YYYY

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