CONFIDENTIAL
CONFIDENTIAL
FM FCO
TO DESKBY 08010OZ HONG KONG
TELNO 864
OF 07172OZ MAY 91
AND TO IMMEDIATE PEKING, WASHINGTON
TOP
177510 MDHOAN 3003
Q DIST KAB 0/4
44
YOUR TELNOS 1396 TO 1398: MFN STATUS FOR CHINA: EFFECT ON HONG
KONG
1.
WE THINK THE DRAFT LETTER IN SECOND TUR ADMIRABLY FITS THE
WE WOULD SUGGEST THE FOLLOWING SMALL CHANGES:
BILL.
A) PARA 3 OF THE LETTER: YOUR DETAILED PAPERS ON THE EFFECTS OF NON RENEWAL SUGGESTS THAT THE GDP GROWTH TREND COULD BE REDUCED BY UP TO ONE THIRD. PERHAPS THE SENTENCE SHOULD READ HONG KONG'S CURRENT GROWTH RATE COULD BE HALVED'' B) PARA 4, FIRST TWO SENTENCES. THESE WILL NOT READ WELL IN PEKING AND DO NOT APPEAR TO ADD MUCH TO THE ARGUMENT. WE SUGGEST DROPPING BOTH AND STARTING 'WE MUST DO EVERYTHING
POSSIBLE.
·
2. ON FURTHER POINT, NOT FOR YOUR LETTER, BUT FOR POSSIBLE USE WITH THE AMERICANS, IS THE QUESTION OF CHINA'S ACCESSION TO THE ICCPR AND ICESCR, WHICH ACCORDING TO A TIN TIN DAILY NEWS REPORT IN LATE APRIL, THE CHINESE ARE NOW CONSIDERING. ALTHOUGH WE SHOULD NOT PLACE TOO MUCH WEIGHT ON THIS REPORT, IT SEEMS CLEAR THAT SUCH A MOVE WOULD ASSIST IN DEFUSING CONGRESSIONAL OPPOSITION TO MFN RENEWAL: IT WOULD ALSO OF COURSE GREATLY SIMPLIFY EVENTUAL DISCUSSION IN THE JLG ABOUT THE INHERITANCE BY CHINA OF OUR OBLIGATIONS UNDER THE COVENANTS, IN ACCORDANCE WITH JD 156. GRATEFUL FOR YOUR VIEWS AS TO WHETHER WE SHOULD ENCOURAGE THE AMERICANS TO DROP SOME HINTS WITH THE CHINESE.
WE
3.
WE AGREE WITH PARA 3 OF FIRST TUR: WE WERE NOT PROPOSING TO RAISE SHIELDING HONG KONG WITH THE AMERICANS AT THIS STAGE. LOOK FORWARD TO YOUR THOUGHTS ON THIS ASPECT.
HURD
YYYY
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