CONFIDENTIAL
A Regulatory Board, headed by a Commissioner, was now being set up.
Gibraltar had reached a halfway house in offshore finance matters; the government wished to attract reputable dealers, but was afraid of losing out on the potentially easy money which less reputable establishments might bring. There was also the continuing headache of ensuring that Gibraltar implemented the growing backlog of EC
directives and regulations. In addition there were ongoing problems involving the Gibraltar Savings Bank, which the Chief Minister had converted into an investment bank, the proposals to establish a Stock Exchange, and the currency and health funds. Mr Gibby
endorsed these points. HMG was anxious to avoid a recurrence of
Barlow Clowes. HMG wanted to encourage and support the development
of the offshore financial sector in Gibraltar within a properly
regulated framework, without being obstructive.
c) DTS and the OECD
as
7. Mr Gibby reported that Gibraltar and the Channel Islands were still anxious to come within the provisions of the OECD umbrella, was the Isle of Man and possibly some other territories. But i it had
not been possible to push ahead with arrangements because of DTI
concern that to do so might upset the present delicate state of negotiations on the National Treatment Instrument, which should be concluded by the end of May. A delegation from the Channel Islands would come to the FCO in March to pursue certain peculiar concerns
that extension of the OECD Convention and Instruments could mean for
them. ERD would be writing to Governors shortly, summarising the advantages and disadvantages of OECD involvement, and asking those Territories interested in involvement to provide a formal letter of
intent. Mr Williams observed that the Gibraltar government had been
pressing for involvement in the OECD for the past eighteen months; they were anxious to secure Japanese investment. Mr January had as yet seen no indications of similar interest among territories covered by WIAD. Mr Gibby anticipated no problems if some DTs, but not others, were to seek involvement. Any Territory which wanted to get involved would have to be prepared to abide by the Convention in full and all the Instruments; application of selected aspects would not be welcomed, nor would that work.
CONFIDENTIAL
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