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5.

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From a purely OECD perspective Hong Kong the world ́s ninth largest trader and a paragon of free trade virtue is an obvious candidate for the Trade Committee in one capacity or other. Their status in the GATT and the (OECD) Trade Committee's increasing interest in work on China will add weight to their application.

6. That said, it is hard to see that observership on the Trade Committee (and, presumably, the Trade Committee Working Party) would be the end of it. At the very least I would expect Hong Kong to follow up quickly with applications to participate in the "horizontal" work of the Trade Committee (trade/environment, trade/ competition, trade/investment and trade/industry) which would more or less require observership on the EPOC, CLP, CIME and Industry Committee too. This is one point which you may wish me to pursue when I see Wong next month.

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ever

Keith Nachunes.

K G MacInnes

CC:

J Cooke Esq

ITP, DTI

P Ricketts Esq HKD, FCO

H Davies Esq - FED, FCO

S Broadbent Esq

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Econ Advisers, FCO

W G Ehrman Esq - Political Adviser, Hong Kong MR Morland Esq CMG - UKMis Geneva

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