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BAPG DELEGATION VISIT TO WASHINGTON: 24-26 JUNE 1991
145
CHINA: MOST FAVOURED NATION STATUS
Points to make
Non renewal of China's MFN status would cause considerable damage to Hong Kong's economy: a dramatic loss in trade, perhaps 40,000 job losses, a halving of GDP growth.
China and Hong Kong are closely linked by trade each other's largest trading partners. About 70% of Chinese exports to the US were re-exported through Hong Kong in
1990.
Non-renewal of MFN would also damage US interests in Hong Kong (US companies and US investment Hong Kong).
- We share concerns over China's past record (human rights, arms proliferation, prison labour exports). Believe however that best way to promote change in China is not to isolate it, but to continue trade and contacts. In any case should
not punish Hong Kong for Peking's faults.
- Difficult time for Hong Kong: needs support from friends
to ensure its continued success up to and beyond 1997. A
loss of confidence or economic downturn in Hong Kong would be in none of our interests.
BRIAET/1
CC