TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 94

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EXCLUSIVITY OF THE CLUB AND THE NATURE OF ITS MEMBERSHIP. MEMBERSHIP OF, OR A RELATIONSHIP WITH, OECD MIGHT BE CONSTRUED AS YET ANOTHER BRITISH PLOT TO TIE HONG KONG INTO A LONG TERM COMMITMENT TO HMG AND LIKE MINDED CAPITALIST GOVERNMENTS.

8.

THERE IS ALSO THE TAIWAN ANGLE. ALTHOUGH CHINA'S REACTION TO TAIWAN'S PARTICIPATION IN THE OECD/DAE DIALOGUE HAS SO FAR BEEN RELATIVELY MUTED, IT IS POSSIBLE THAT THE CHINESE MIGHT CONSTRUE ANY ATTEMPT TO ENROL HONG KONG IN A MORE FORMAL RELATIONSHIP WITH THE OECD AS AN UNFRIENDLY ACT, LARGELY FOR FEAR OF CREATING A PRECEDENT FOR TAIWAN AND RESULT IN CHINA CONSEQUENTLY RAISING PROBLEMS OVER THE OECD/DAE DIALOGUE IN RESPECT OF BOTH HONG KONG AND TAIWAN. BUT THIS IS OBVIOUSLY ALL SPECULATION UNTIL THE QUESTION IS PUT TO THE CHINESE.

C) ATTITUDE OF OTHER OECD MEMBERS

9. POSSIBLE POLITICAL OBJECTIONS ON THE PART OF THE EXISTING MEMBERSHIP ARE LIKELY TO BE THREEFOLD:

M

NERVOUSNESS ABOUT THE LIKELY CHINESE REACTION.

THE OECD

SECRETARY GENERAL AND THE MEMBERSHIP GENERALLY HAVE SO FAR TAKEN GREAT CARE TO AVOID OFFENDING CHINESE SENSITIVITIES IN THE OECD/DAE DIALOGUE AND WOULD BE LOATHE TO JEOPARDISE THE PROGRESS

SO FAR ACHIEVED:

RELUCTANCE TO ALLOW A PART OF CHINA TO EAVESDROP ON OECD'S INTERGOVERNMENTAL DISCUSSIONS AFTER 1997: AND

- A GENERAL RESISTANCE TO THE ENLARGEMENT OF THE ORGANISATION (ALTHOUGH WE WOULD WELCOME UKDEL OECD'S VIEWS ON THIS IN THE LIGHT OF THE INTEREST BEING SHOWN BY CERTAIN EAST EUROPEANS AND THE UNCERTAINTY SURROUNDING SOUTH KOREA'S INTENTIONS.)

10. SEEN FROM HERE, WE SUSPECT THAT OUR PARTNERS' SENSITIVITY TO CHINESE REACTIONS WOULD BE MANAGEABLE IF WE HAD SOME FAIRLY FIRM ASSURANCE FROM THE CHINESE THAT THEY WOULD NOT MAKE PROBLEMS. SIMILARLY IF MEMBER COUNTRIES FELT THAT SOME SORT OF RELATIONSHIP WITH HONG KONG WERE DESIRABLE, AND PROVIDED CHINA WERE CONTENT, WE SUSPECT THAT THE MODALITIES COULD PROBABLY BE FOUND TO ACHIEVE THIS.

11. WE WOULD BE INTERESTED TO KNOW WHETHER YOU HAVE GIVEN ANY FURTHER THOUGHT TO THE QUESTION OF MEMBERSHIP OR SOME OTHER FORM OF ASSOCIATION WITH THE OECD. WE WOULD ALSO WELCOME YOUR VIEWS

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