TNAG-2752-FCO40-3967-Organisation-for-Economic-Co-operation-and-Development-(OECD-1994 — Page 158

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From the Permanent Representative

File Ref: 021/7

KR Tebbit Esq

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United Kingdom Delegation To the Organisation for Economic Co-operation and Development

"KE CO'Connell

24 May 1993

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Dew Kevin,

19 Rue De Franqueville

75116 Paris

Telephone: 45 24 98 20 Facsimile: 45 24 98 37

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OECD/HONG KONG: PROBABLE APPLICATION TO PARTICIPATE IN THE WORK OF THE TRADE COMMITTEE

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1 In my letter of 21 October 1992 to William Ehrman in Hong Kong I reported on my discussions with the Hong Kong Representative to the GATT, Joseph Wong, about Hong Kong's aspirations towards the OECD in general and the Trade Committee in particular. Sarah O'Connell, by her letter of 4 December to Alastair Newton, asked that we keep ERD informed of developments so that you could co- ordinate policy in Whitehall.

2. One of Wong's staff told us last week that Hong Kong would almost certainly be applying formally to engage in the work of the Trade Committee as a participating observer (ie the same status as Korea, Mexico and the central European "Partners in Transition" (PITs)), Wong himself may call on me in mid-June and will wish to discuss this. I should be grateful for guidance before then as to our line.

3. This latest development follows consultations between the Hong Kong mission in Geneva and the Secretariat here, who have provided an informal legal opinion (copy attached) which makes it clear that observership would be permissible under OECD rules. From Hong Kong's point of view this rather than committee membership which has also been considered is, in any case, preferable since it would seem to fall within their "independent" operational parameters in the run-up to 1997 and not require approval in Peking. After 1997 they would still be able to retain their place at the Trade Committee table, as they will with the GATT.

4. I understand that Wong's next step will be to clear lines with the Governor before the Hong Kong authorities seek our support in principle. They would then sound out other OECD members, notably their APEC partners (Canada, Australia, Japan, US, New Zealand), before submitting an application probably in the early autumn. They were keen not to leave it any longer since some might see the increasing imminence of 1997 as a problem.

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