TNAG-2241-FCO40-3222-Asia-Pacific-Economic-Cooperation-(APEC)-1991 — Page 70

ACKGROUND

Asia Pacific Economic Cooperation (APEC)

1.

Most

APEC is an informal forum created in 1989 for discussion and promotion of open multilateral trade and economic cooperation. Membership comprises the six ASEAN countries plus Australia, New Zealand, Korea, Japan, USA and Canada. countries in the region are keen to maintain and strengthen APEC and are concerned that any new regional cooperation initiatives (such as the Malaysian EAEG idea see below)

should not undermine it. Discussion at the next Ministerial meeting (the third) in Seoul in October 1991 is likely to focus on the Uruguay Round, though regional trade measures will also

come up. The Koreans, as host to the next Ministerial, are

working on the "three Chinas problem". Peking has suggested that China should become a member of APEC, with Hong Kong and

Taiwan as observers. The APEC membership is not in favour of

this idea and is looking for a formula which would enable Hong Kong and Taiwan to participate fully without prejudice to China's views on sovereignty. We believe it is important for Hong Kong to join and that their case is strengthened by their

active participation in the dialogue between the OECD and the

Dynamic Asian Economies, their recent admission to the Pacific

Economic Cooperation Conference (PECC) as a full member, and their independent membership of GATT which will continue after

1997, all of which do not cause problems with Peking. It is

unlikely that the three Chinas will join at the time of the

Seoul meeting.

Pacific Economic Cooperation Conference (PECC)

PECC was founded in 1980 and serves as a forum for the

discussion of issues concerning economic cooperation and to

promote the study of these issues among the PECC members. PECC

2.

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