TNAG-2752-FCO40-3967-Organisation-for-Economic-Co-operation-and-Development-(OECD-1994 — Page 276

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94 Victoria Street

LONDON SWI

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United Kingdom Delegation

to the Organisation for Economic Co-operation and Development

19 rue de Franqueville

75116 Parls

Telephone: 45 24 98 28

Facsimile: 45 24 98 37

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24/3

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

In paragraph 4 of my letter of 3 March concerning the OECD Development Centre I mentioned that the Centre were beginning to focus on the one year short term studies to be included in their 1994 work programme which will be considered at an Advisory Board meeting on 19 May.

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2. The enclosed letter from Jean Bonvin, the acting Head of the Centre, informs us that one short term study being considered is on 'China's Future Outlook and the Hong Kong Dollar'. He seeks confirmation that we would not be opposed.

3. I should be grateful for a quick reaction. My own view is that such a study carried out by a research institute of high academic repute under OECD auspices seems very unlikely to be embarrassing to us, although we might in response say that whether we supported it would depend on what other proposals were made for the 1994 work programme.

4. For the benefit of Hugh Davies (my predecessor but one in this post) it may be worth my pointing out that short term studies by the Centre (taking not more than one year to complete) are a recent innovation intended to respond to demands that the Centre's work should be operationally relevant. The UK's main concern hitherto has been to keep them as related as closely as possible to the 3 year research themes in order not to dilute quality of Centre's work by diversion of resources. The short term study on 'China's Future Outlook and the Hong Kong Dollar' would be slotted in under the 'From Reform to Growth', a sub- section of 'The Challenge of National Growth' theme (see attachment setting out the main term studies).

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