RESTRICTED

RESTRICTED

FM FCO

TO IMMEDIATE HONG KONG

TELNO 857

OF 04140OZ MAY 91

INFO PRIORITY PEKING, WASHINGTON

to

172232

MDHOAN 2928

Whis orola

13 MAY 19 Mr Stone.

TOP COPY Q DIST?

FROM HKD

YOUR TELNO 1062: MFN STATUS FOR CHINA: EFFECT ON HONG KONG

1. WE WERE MOST GRATEFUL FOR YOUR ANALYSIS IN TUR AND THE DETAILED PAPER. WE AGREE BROADLY WITH THE THRUST OF YOUR APPROACH. WE SHALL BE SEEKING MINISTERS VIEWS EARLY NEXT WEEK ON WHAT WE SHOULD DO TO REINFORCE YOUR EFFORTS. WE HAVE IN MIND

SUCH ASPECTS AS RAISING HONG KONG AND MFN IN APPROPRIATE BILATERALS WITH THE AMERICANS, GETTING THIRD COUNTRIES WITH AN INTEREST ON SIDE, AND TALKING TO CHINESE ABOUT WHAT THEY MIGHT DO ON WHICH WE WILL TELEGRAPH FURTHER SEPARATELY.

MND

2.

IT WOULD BE PRUDENT HOWEVER TO CONSIDER WHETHER THERE ARE ANY WAYS IN WHICH WE COULD SEEK TO SHIELD HONG KONG, SHOULD IT APPEAR THAT NON-RENEWAL OF CHINA'S MEN STATUS WAS LOOMING. IS THERE, FOR EXAMPLE, ANY MILEAGE IN THE THOUGHTS SET OUT IN

PARA 6 OF PEKING TELNO 575 THAT THE BAN COULD BE DESIGNED TO

AVOID HARMING THE COMMERCIAL INTERESTS OF HONG KONG JOINT VENTURES OR RE EXPORTERS?

HONG KONG BE EXEMPTED?

COULD CHINESE EXPORTS ROUTED VIA

3.

WE WOULD WELCOME YOUR THOUGHTS ON ANY MEASURES TO PROTECT

HONG KONG, WHICH WE MIGHT PUT TO THE AMERICANS, IF THE SITUATION WARRANTED IT.

HURD

YYYY

ΜΑΙΝ

33

LIMITED

HKD

FED

NAD

DISTRIBUTION

33

PAGE

ERD

SIR J COLES

MR BURNS

1

RESTRICTED

Share This Page