TNAG-2752-FCO40-3967-Organisation-for-Economic-Co-operation-and-Development-(OECD-1994 — Page 240

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3. The Japanese think it is important to get China more

closely involved in international economic organisations and to encourage the consolidation of a reformist economic stance. They

intend to suggest that in the medium term OECD should consider

inviting the Chinese to come and talk about their economic

policy and that as a first step OECD might undertake a detailed study of the Chinese economy.

4.

real

The Japanese recognise that there are resource constraints on OECD because of the proliferation of new dialogue

partners. They also seem flexible about the precise format and

nature of Chinese involvement. However, they regard China as so important that the matter requires serious discussion within

In addition, there is a problem of precedent, if Ching is singled out QECD. for special treatment while there are other potential dialogue parters who have. been waiting in the wings for longer.

1

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

make

desirable influence will demand OECD dialogue with China. Given this, and the admitted need to involve China more closely in the

seems international economic order, it perhaps more sensible to start the dialogue earlier than later.

work towards including China in their dialogue with the other Dynamic Non-Member

at which the other melabera of the

already participate!) The Three We recognise the very real resource constraints and the problem of precedent if we are seen to single out China for special treatment for there are other potential dialogue partners in the wings. The question must be the degree of

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