Chinese in serious market access negotiations "this year, and probably sooner rather than later". The threat to withdraw MFN would certainly be hovering over those negotiations. As for Congress, the trade numbers, combined with the political arguments, were bound to keep the MFN issue a live one if the President did renew the waiver.

Andrew Heath

yous ever, Auchen

First Secretary (Commercial)

CC:

Commercial Department, Beijing

British Trade Commission, Hong Kong

FED, FCO

Mr Lo, Hong Kong Office

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