Paper for Sir J Coles Meeting
CHINA : MFN
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Thank you.
4.c.7.
1. Last year we had a clear interest, on behalf of Hong Kong, in arguing for MFN extension. We also used the fact that we had argued with the US as a demonstration to Peking of our goodwill, in the hope of reducing their suspicions and winning their cooperation.
2.
This year the picture is more complex: -
(i)
(ii)
(iii)
The Hong Kong economic arguments are the same, as set out in Mr Paul's minute;
But the Chinese have done little or nothing to respond to
our help
they have been bolshy over PADS and JLG issues
they have made very little attempt to respond to human
rights concerns
they continue unacceptable trade practices (intellectual property rights infringements);
Nevertheless Ministers have already taken positions on
this issue
the Prime Minister mentioned it to President Bush on
13 March
the Secretary of State told Qian Qichen we would continue to argue the case with the US.
3. I conclude therefore that for the reasons in (i) and (iii) we should continue to do what we can. But for the reasons in (ii) we should consider what else to say to the Chinese. This might include the following points: -
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