28 March 1991

RESTRICTED

From: Private Secretary

To:

J S Wall Esq, CMG, LVO

10 Downing Street

Dow

HONG KONG: LETTER FROM MR CH TUNG ON CHINA'S MOST

FAVOURED NATION STATUS IN THE US

Thank you for your letter of 19 March about a Mr C H

Tung's letter of 14 March to the Prime Minister, which raised the issue of the effect on Hong Kong if China were

to loose its Most Favoured Nation (MFN) status in the US

and thanked the Prime Minister for indicating that he

Would take the matter up with the President. I enclose a

sympathetic draft reply.

Retention of China's MFN status in the US is indeed very important for Hong Kong's continued prosperity.

The Prime Minister raised the MFN issue with President Bush in Bermuda on 13/March outlining the damage any repeal would do to Hong Kong. The President said this was a good argument/to use with Congress and said

CIAAAB

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