DRAFT LETTER FROM PRIME MINISTER TO:

Mr C H Tung

Associated Maritime Company (London) Ltd

Metro House

58 St James Street

London

Thank you for your letter of 14 March. I very much enjoyed meeting you at our recent lunch: Hong Kong is of

great importance to the Government and I always welcome

the opportunity to meet its leading figures.

In your letter of 14 March you raise the question of

China's MFN status in the US and the adverse impact which withdrawal of that status would have on Hong Kong. I

entirely take your point and agree that the effect on

Hong Kong, both direct and indirect, would be severe and

long lasting.

As you may know, when this issue came up in 1990 we

lobbied hard on Hong Kong's behalf. When announcing that

he was renewing China's MFN status, the President said that Hong Kong had weighed on his mind.

As a

We will play an active part again this year.

first step, when I saw President Bush in Bermuda on

13 March I told him squarely that withdrawal of MFN

status would do grave damage to Hong Kong. Once again he showed himself sympathetic to Hong Kong's concerns, but

we all need to consider how we can most effectively get

the point across to members of Congress.

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