SE 798 3406 FIQU
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5.
DGT said that he understood that ASEAN countries might have difficulty accepting an extra contribution of 0.5% each. Also, Thailand expressed concern that it would pay more than Singapore and Hong Kong under the modified Option B.
III EUTURE COOPERATION
6.
DGT said that it would be desirable for Hong Kong and China to have some mutual understanding on APEC issues. It would thus be helpful for the two to exchange views on APEC matters before APEC meetings. This would serve to avoid any seemingly adversarial views expressed by China and Hong Kong in the APEC forum.
7.
Qin welcomed the idea of regular communication and consultation, even though the views of China and Hong Kong might be different. He shared DGT's views that it would be wise for China and Hong Kong to avoid expressing unnecessary opposing views in the open forum. He suggested that in future the two sides should exchange views on APEC matters prior to meetings. As a first step, DGT suggested and Qin agreed that the two sides would exchange views on APEC matters before attending SOMI of APEC V scheduled for 4-6 November, in Washington D. C.
IV
HEADS OF STATE MEETING
8.
DGT said that the Governor had issued a reply to Keating indicating Hong Kong's difficulties with the Australian proposal of APEC summit. Hong Kong felt that it would not be appropriate for APEC to deal with non-economic issues. As a full APEC member, we could not accept being excluded from any APEC meeting. In any event, the Australians had indicated that they would not raise this issue at this ministerial.
9.
Qin said that the Australians had approached China on the issue. It was his view that the APEC membership was too narrow for discussion of regional issues by Heads of States. The Asia-Pacific region comprised more than 40 countries, and APEC comprised only 15 members. More countries should be allowed to participate, and APEC did not appear to be the
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