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TELNO 1783
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INFO IMMEDIATE PEKING, HONG KONG
#KB 020114.
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MDHIAN 1.513
OUR TELNO 1749 : US/CHINA/HONG KONG CONGRESSIONAL PROPOSALS FOR FURTHER US MEASURES
SUMMARY
1.
BIPARTISAN GROUP IN THE HOUSE NEGOTIATES A PACKAGE ON CHINA FOR INCLUSION IN THE FOREIGN AID AUTHORISATION BILL, INCLUDING SOME UNWELCOME LANGUAGE ON HONG KONG. ADMINISTRATION OPPOSED TO LEGISLATION ON THESE LINES BUT WE SHOULD MAKE OUR VIEWS CLEAR ON THE HONG KONG POINT. RECOMMENDATION THAT THE PRIME MINISTER DOES
SO WITH FASCELL NEXT WEEK.
DETAIL
2. A BIPARTISAN GROUP IN THE HOUSE, INCLUDING REPS BROOMFIELD ON THE REPUBLICAN SIDE AND SOLARZ FOR THE DEMOCRATS, HAVE WORKED OUT AN AMENDMENT ON CHINA CAPPROVED UNANIMOUSLY ON THE FLOOR OF THE HOUSE ON 29 JUNE) TO BE ADDED TO THE FOREIGN AID AUTHORISATION BILL WHICH IS AT PRESENT ON THE FLOOR OF
THE HOUSE. THE FULL TEXT OF THIS SHOULD BE AVAILABLE SHORTLY
BUT ACCORDING TO PRESS ACCOUNTS CAND A PARTIAL TEXT ON THE HONG KONG POINT) THE MAIN ELEMENTS INCLUDE THE SUSPENSION OF:
3.
(I) OPIC (POLITICAL RISK INSURANCE) COVER:
(II)
EXPORT OF EQUIPMENT FOR THE CHINESE POLICE:
(III) NEW US TRADE DEVELOPMENT ACTIVITY:
(IV)
PEACEFUL NUCLEAR COOPERATION:
(V) THE EXPORT OF US SPACE SATELLITES FOR LAUNCH ON
CHINESE MISSILES:
(VI) EXPORT LICENCES FOR MILITARY EQUIPMENT.
SOME OF THESE POINTS ARE ALREADY COVERED IN THE
DECISIONS MADE BY PRESIDENT BUSH BY EXECUTIVE ORDER. THE
EFFECT WOULD BE TO GIVE THEM THE FORCE OF LAW. AS WELL AS ADDING SOME NEW MEASURES THE AMENDMENT ALSO INCLUDES QUOTE SENSE OF THE CONGRESS UNQUOTE (IE NON-
BINDING) LANGUAGE DECLARING THAT:
(I) US POLICY TOWARDS CHINA SHOULD BE EXPLICITLY LINKED
TO CHINA'S ACTIONS IN TIBET:
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