OECD: PORTUGAL SUPPORTS NEGOTIATIONS WITH RUSSIA,

UNCLAS LISBON 001445 SIPDIS SIPDIS USOECD DEPT PASS TO EUR/WE KEVIN OPSTRUP PARIS PASS TO USOECD E.O. 12958: N/A TAGS: ECIN ECON EFIN OECD PO SUBJECT: OECD: PORTUGAL SUPPORTS NEGOTIATIONS WITH RUSSIA, BUT NOT FINANCIAL REFORMS REF: A. STATE 67401 ¶B. STATE 62464 (U) SUMMARY: According to an Advisor in the MFA's Office of International Economic Organizations and Multilateral Affairs, the GOP concurs with USG concerns on efficiency and effectiveness issues in the OECD, but finds the USG proposal to revamp the OECD's financial system "unfair to medium and smaller-sized economies." In addition, the GOP stands behind Russian accession as long as the GOR fulfills OECD requirements for membership. END SUMMARY. (U) On May 21, P/E Officer met with Jose Rui Velez Caroco, Advisor in the International Economic Organizations and Multilateral Affairs Office at the MFA, to discuss reftel talking points on OECD enlargement and enhanced engagement. While the GOP agrees with USG concerns on maintaining efficiency and effectiveness in the OECD during enlargement, it has reservations about the USG's suggestion to revamp the financial contributions system. The GOP finds the USG's "burden-sharing" proposition to be "unfair to medium and smaller economies" and will push for more compromise in this area. The GOP believes that countries with smaller economies should not be expected to make payments proportionate to those made by larger economies. (U) Regarding Russia, Caroco stated that Russia has solicited FM Amado's support for its OECD candidacy. The GOP supports Russian accession on the condition that it fulfills OECD membership guidelines. Portugal also supports Russia's accession to the WTO. Hoffman