TNAG-2752-FCO40-3967-Organisation-for-Economic-Co-operation-and-Development-(OECD-1994 — Page 207

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waiting in the wings for longer.

5. It would not be easy for us to support a dialogue in the immediate future given China's recent threats to discriminate against British trade. Nor can China be regarded as a likely future member of the OECD within any foreseeable timeframe. The Chinese economy is making rapid strides forward, but its problems differ significantly from those facing existing members, and, of course, China's political system is an authoritarian dictatorship rather than a pluralistic democracy. That said, China's economic growth and economic influence within and increasingly, beyond, Asia cannot be ignored. It is inevitable that, at some stage, China's growth and economic influence will make OECD dialogue with China desirable. Given this, and the admitted need to involve China more closely in the international economic order, it seems sensible to suggest that the OECD should start to work towards including China in their existing dialogue with the other Dynamic Non-Member economies at which Taiwan and Hong Kong already participate. These two plus China, participate in APEC and China's inclusion in a dialogue forum with OECD in which Hong Kong and Taiwan were also present would help to emphasise Hong Kong's equal and separate economic status.

Ralind Corry

I C Ruff

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