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MKB 090/4

Seartay & Stak

Gust

12

FROM:

A R Paul

DATE:

Hong Kong Department

28 March 1991

9/4

CC:

Sir J Coles

сор

ministe

COP SEEN + SCENED

Mr Burns

FED

NAD

PS/Lord Caithness

Private Secretary

had Carloman agreer

Wh Tith

4/4

An additin

आजप

HONG KONG AND CHINA'S MOST FAVOURED NATION STATUS IN THE US

Α

Problem

1.

Mr C H Tung, a major Hong Kong entrepreneur, has written to the Prime Minister setting out the importance to Hong Kong of China continuing to enjoy Most Favoured Nation (MFN)

status in the US.

Recommendation

2. I recommend that the Prime Minister reply

sympathetically. I submit a draft letter and a draft PS letter to PS/No 10. The DTI and FED are content.

Background

3. Mr C H Tung is a prominent Hong Kong shipping magnate. He attended the Prime Minister's lunch on 13 March for members of the Anglo-Hong Kong Trust. He has followed up the lunch with a letter to the Prime Minister setting out the importance to Hong Kong of China retaining its MFN status in the US and thanking the Prime Minister for indicating that he would raise the issue with the President

in Bermuda.

4.

Retention of China's MFN status in the US is indeed vital for Hong Kong's continued prosperity (see Annex A

REXACT/1

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