TNAG-2752-FCO40-3967-Organisation-for-Economic-Co-operation-and-Development-(OECD-1994 — Page 245

PA OECO

J Thomas Esq., (by fax)

UKDEL/OECD Paris

HKB 091/3

RECEIVED IN REGISTRY 07 APR 1993

Foreign & Commonwealth

Office

London SWIA 2AH

OFSK OFFICER

Telephone: 071-

it

PA

REGISTRY Action Taken

31 now wha

1997

Dear Jenkin

DEVELOPMENT CENTRE WORK PROGRAMME: PROPOSED 1994 SHORT TERM STUDY ON "CHINA'S FUTURE OUTLOOK AND THE HONG KONG DOLLAR"

1. We have seen a copy of Paul Ackroyd's letter of 29 March about the OECD proposal and are slightly concerned that it does not fully reflect the advice from HKD.

2. You will have seen Hong Kong telno 477 and Peking telno 433 setting out their views. We can fully appreciate Hong Kong's reluctance to go along with this study, and in particular their concern that the study would focus on the Hong Kong dollar. However, we would have no objection to a study which focussed more on China's reform experience and Hong Kong's role as China's door to the outside world. In this context, it would be more appropriate to look at the Chinese monetary and exchange rate policy than the Hong Kong dollar.

Yours WJ

I C Ruff

Economic Relations Department

CC

N Whitney Esq.,HKD

L Bristow-Smith Esq.,FED

C Lane Esq., Economic Advisers

S Chakrabarti Esq.,APD/ODA

P Ackroyd Esq., MRED/ODA