For discussion EC(96-97)9
on 8 May 1996
ITEM FOR ESTABLlSHMENT SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 96 - GOVERNMENT SECRETARIAT: OVERSEAS OFFICES
Subhead 001 Salaries
Members are invited to recommend to Finance Committee -
- the creation of one permanent post of Administrative Officer Staff Grade C (D2) ($95,550 - $101,450) in the Geneva Office; and
- the deletion of one permanent post of Administrative Officer Staff Grade C (D2) ($95,550 - $101,450) in the London Office.
We need additional support at the directorate level in the Hong Kong Economic and Trade Office (HKETO) in Geneva to cope with additional responsibilities arising from Hong Kongs participation in the Trade Committee of the Organisation for Economic Co-operation and Development (OECD) and in the World Trade Organisation (WTO).
2. The transformation of the London Office into a HKETO has made an Administrative Officer Staff Grade C (AOSGC) (D2) post redundant.
3. The Secretary for Trade and Industry (STI) proposes to create a permanent post of AOSGC (D2) in the Geneva Office and delete a permanent post of AOSGC (D2) in the London Office.
4. The HKETO in Geneva participates in all activities of the WTO based in Geneva. It is also our contact and liaison point for OECD in Paris. The head of the Geneva Office, designated as the Permanent Representative of Hong Kong to WTO (ranked at AOSGB1), is supported by two Deputy Representatives (ranked at AOSGC) whose job descriptions are at Enclosures 1 and 2 respectively.
5. Since 1989, Hong Kong has been participating in various workshops organised by OECD to maintain an informal dialogue with non-member economies. Hong Kong has become an observer on OECDs Trade Committee since 1994.
6. OECDs Trade Committee is a forum for discussions on a full range of trade issues in a non-negotiating atmosphere. Some of the issues discussed in the Trade Committee include international contestability of markets, developments in APEC meetings and international Ministerial meetings, trade and investment, trade and competition, and work on regulatory reform. Initiatives first considered in the OECD Trade Committee are often followed up in the WTO and eventually translated into binding multilateral agreements or codes. Given our active involvement in WTO negotiations, we have to monitor the evolution of OECD discussions on trade policies so as to prepare for the possible emergence of related negotiations in WTO. Participation in the OECD Trade Committee and related meetings also provides us an opportunity to influence OECD deliberations which have a bearing on Hong Kong.
7. Hong Kongs Permanent Representative to WTO is responsible for maintaining contacts with OECD members delegations and the OECD Secretariat in order to monitor developments regarding Hong Kongs relations with the OECD. He represents Hong Kong at meetings of the Trade Committee. He is supported by the Deputy Representative to WTO (2) who also attends the meetings of the Working Party set up under the Trade Committee to implement the work mandated by the Committee and hold detailed discussions. The Working Party meets frequently, both formally and informally, and Hong Kong attends these meetings.
8. Furthermore, the Trade Committee (and/or its Working Party) also holds frequent joint meetings with other OECD committees/working parties on new horizontal issues such as trade and environment, trade and investment, trade and competition, and trade and labour standards. The Deputy Representative to WTO (2) has to attend these meetings as Hong Kongs representative. In order to keep in touch with developments, this officer also has to liaise regularly with the OECD Secretariat and other members delegation between meetings.
9. Our observer status is reviewed annually by OECD members. Renewal of that status depends on our continual ability to participate in discussions actively and constructively and on the quality of our contributions to deliberations which touch on both conceptual principles and complex practical trade practices. Our active participation in the relevant OECD meetings requires careful preparations which include studying the large number of detailed analyses on complex issues that the OECD Secretariat produces regularly before attending each meeting and putting together extensive briefing/background material. As an illustration, in the six-month period from May to November 1995, the Geneva Office received a total of 400 papers from OECD, each of which comprised 30 to 40 pages.
10. The WTO has a much wider scope of activities than its predecessor, the General Agreement on Tariffs and Trade (GATT). WTO has, for example, apart from additional activities related to the implementation of the package of Uruguay Round (UR) agreements and other unfinished UR business, taken up the subject of international rules and regulations for trade in services, which was not covered by the GATT. This new area is much more complex and technical than trade in goods.
11. As the main focus of the Geneva Office is on WTO negotiations, its responsibilities have greatly expanded with the establishment of WTO. As a result of the significant development of our relations with OECD and the increase in work relating to the WTO, the existing staff in the Geneva Office, in particular the Deputy Representative to WTO (2), are under enormous pressure of work. Additional support at directorate level is required. The provision of an additional directorate officer overseeing OECD matters will help the Geneva Office to focus more thoroughly on all OECD affairs, assist in dealing with WTO issues that are linked to OECD discussions and free much needed resources for the expanding services negotiations in WTO.
12. Based on our experience in OECD work and having regard to the complexity of the matters discussed at OECDs Trade Committee and its Working Party, an officer at AOSGC (D2) level is needed to represent Hong Kong in the Working Party meetings, and to liaise confidently with senior representatives of other OECD members on a regular basis. STI therefore proposes that an AOSGC post, to be designated as Deputy Representative to WTO (3), be created under the Geneva Office. In line with the agreed practice of flexible ranking, STI may deploy an officer at a higher rank to fill the post should circumstance requires. The new post should focus predominantly on OECD matters but will also relieve the Deputy Representative to WTO (2) of some WTO activities relating to the Balance of Payment and Regional Trading Committees as well as co-ordination of Hong Kongs activities between WTO and OECD.
13. The revised job description of the existing Deputy Representative to WTO (2) and the proposed job description of the new AOSGC are at Enclosures 3 and 4 respectively. The revised organisation chart of the Geneva Office is at Enclosure 5.
14. Following the strengthening of the Commercial Affairs Division and the deletion of the Deputy Commissioner post in July 1995, the London Office is gradually transforming into an HKETO. The Commissioner, London has advised that the post of his Assistant Commissioner, Public Affairs (AC(PA)) ranked at AOSGC (D2), is no longer required. This post was created for the co-ordination of community services and services to Hong Kong students in UK which will either be wound down or reduced substantially in future. The residual function in the supervision of the Public Relations Section will be absorbed by other senior staff.
15. Since 1990-91, the London Office has been undergoing a re-organisation, with a view to transforming itself into a HKETO. Activities and services which are not related to economic and trade matters are gradually trimmed down and discontinued. It has ceased to provide a recruitment and training placement service in the UK for Government departments in Hong Kong; reduced its liaison function with Hong Kong students and the Hong Kong Chinese community in the UK; and will cease to operate a sub-treasury function in the UK shortly. The proposed deletion of an AOSGC post represents a further step in the restructuring of the office. The organisation chart of the London Office is at Enclosure 6.
16. This proposal itself will have no additional financial implications as the provision for the creation of the AOSGC post for the Geneva Office will be offset by the deletion of the post at the same rank in the London Office. The financial implications are set out as follows -
|
Notional Annual Salary Cost at Mid-point
$
|
Full Annual Average Staff Cost
$
| No. of Post
|
|---|
|
AOSGC
|
1,182,600
|
2,187,240
|
1
|
|
Less AOSGC
|
1,182,600
|
2,187,240
|
1
|
|
0
|
0
|
0 |
17. However, the proposed creation of the post in Geneva will necessitate the creation of a locally-engaged Personal Secretary post in the Geneva Office at a mid-point salary cost of $465,741. This will be offset by the deletion of a locally engaged Personal Secretary post in the London Office at a mid-point salary cost of $136,524. The cost difference between the two staff is due to the difference in the cost of living and hence pay level between Geneva and London.
18. The OECD was established in 1961. The OECD is basically a forum for discussion where governments express their views, share experience and search for common ground and solutions. The aims of OECD are -
- to achieve the highest attainable economic growth and employment and a rising standard of living in member countries, while maintaining financial stability, and thus to contribute to the development of the world economy;
- to contribute to sound economic expansion in member as well as non-member countries in the process of economic development; and
- to contribute to the expansion of world trade on a multilateral non-discriminatory basis in accordance with international obligations.
19. At present, OECD has 25 member countries. The major part of OECDs activities is carried out by its 150 committees, expert groups and working parties in various areas. These committees and other bodies are supported by an international secretariat located in Paris.
20. The London Office has been undergoing a reorganisation to transform itself into a HKETO. We have over the past six years deleted or redeployed about 50 posts from the London Office.
21. CSB agrees that an additional directorate officer at AOSGC level is required in the HKETO in Geneva in view of the additional activities related to the OECD and the WTO. Having regard to the changing responsibilities of the London Office, CSB also supports the deletion of the AC(PA) post.
22. The Standing Committee on Directorate Salaries and Conditions of Services has advised that the grading proposed for the permanent AOSGC post in the Geneva Office would be appropriate if the post were to be created.
Trade and Industry Branch
April 1996
Enclosure 1 to EC(96-97)9
Main duties and responsibilities
Responsible to the Permanent Representative of HK to World Trade Organisation (WTO) for -
- all matters relating to WTOs General Council;
- all matters relating to WTOs Goods Council;
- institutional WTO issues, and WTOs administrative, budget and financial matters;
- all matters relating to the Dispute Settlement Body, Textile and Clothing, and Trade and Environment; and
- all matters relating to Trade Related Aspects of Intellectual Property Rights (TRIPS) and WTOs TRIPS Council.
Enclosure 2 to EC(96-97)9
Main duties and responsibilities
Responsible to the Permanent Representative of HK to World Trade Organisation (WTO) for -
- all matters relating to services and WTOs Services Council;
- sectorial negotiations on services, e.g. financial services, movement of personnel, basic telecommunications, maritime transport and professional services;
- work relating to the General Agreement on Trade in Services (GATS) Councils Committee on Specific Commitments and Working Party on GATS Rules;
- general co-ordination of OECD matters;
- OECD Trade Committee, Working Party and related meetings;
- OECD horizontal work;
- WTO trade policy review; and
- accession of China and Chinese Taipei to WTO and overall supervision of accession issues.
Enclosure 3 to EC(96-97)9
Main duties and responsibilities
Responsible to the Permanent Representative of HK to World Trade Organisation (WTO) for -
- all matters relating to services and WTOs Services Council;
- sectorial negotiations on services, e.g. financial services, movement of personnel, basic telecommunications, maritime transport and professional services;
- work relating to the General Agreement on Trade in Services (GATS) Councils Committee on Specific Commitments and Working Party on GATS Rules;
- accession of China and Chinese Taipei to WTO and overall supervision of accession issues; and
- sponsored visitors to Hong Kong and important Hong Kong visitors to Geneva.
Enclosure 4 to EC(96-97)9
Main duties and responsibilities
Responsible to the Permanent Representative of HK to World Trade Organisation (WTO) for -
- all matters relating to the Organisation for Economic Co-operation and Development (OECD) including attendance at meetings of the Trade Committee, Trade Committee Working Party and meetings on horizontal work;
- bilateral commercial relations with Switzerland;
- specific WTO reviews of trade policy for Hong Kong, and overall supervision of Hong Kongs input into trade policy reviews generally;
- co-ordination of Hong Kongs activities between WTO and OECD on certain major policy areas - competition, labour standards, investment;
- work relating to WTOs Balance of Payments Committee; and
- work relating to WTOs Committee on Regional Trading Arrangements and overseeing all matters relating to regional trading.
Last Updated on 3 December 1998
