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FM WASHINGTON
TO IMMEDIATE FCO
TELNO 1414
OF 28231OZ MAY 91
INFO IMMEDIATE HONG KONG, ACTOR
INFO ROUTINE CANBERRA, TOKYO, SINGAPORE, OTTAWA, PEKING
CHINA/US RELATIONS: MFN
SUMMARY
1. PRESIDENT BUSH ANNOUNCES THAT HE WILL SEEK EXTENSION OF MFN FOR CHINA, ARGUING THAT THE BEST WAY TO PROMOTE CHANGE IN CHINA IS TO CONTINUE TRADE AND CONTACTS. MENTIONS HONG KONG ANGLE, AND BRITISH CONCERNS. BATTLE AHEAD IN CONGRESS.
DETAIL
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2.
IN A SPEECH AT YALE UNIVERSITY ON 27 MAY PRESIDENT BUSH SAID THAT LATER THIS WEEK HE WOULD FORMALLY ANNOUNCE THE CONTINUATION OF
MFN FOR CHINA. HE ARGUED AT LENGTH THAT THE BEST WAY TO PROMOTE AMERICAN VALUES WAS FOR AMERICA TO REACH OUT, RATHER THAN TURN INWARD. IN THE FAR EAST PARTICULARLY SOUTH KOREA AND TAIWAN
AMERICAN-LEAD ECONOMIC GROWTH AND TRADE HAD PRODUCED PROSPERITY AND FREEDOM. THE SAME APPROACH SHOULD GUIDE POLICY TOWARDS CHINA. MOREOVER CHINA HAD A CENTRAL ROLE TO PLAY IN REDUCING REGIONAL TENSION (IN CAMBODIA AND KOREA), AND AT THE UN SECURITY COUNCIL WHERE ITS STANCE AGAINST IRAQ HAD HELPED FORGE THE ALLIED COALITION THAT BROUGHT VICTORY IN THE GULF.
3. THE PRESIDENT CONCEDED THAT THERE WERE PROBLEMS WITH CHINA. AT
EVERY HIGH-LEVEL MEETING WITH THE CHINESE US OFFICIALS REITERATED THE US GOVERNMENT'S CONCERN ABOUT HUMAN RIGHTS VIOLATIONS. HE SAID THAT, AS A MEMBER OF THE UN, CHINA WAS BOUND BY THE UN DECLARATION OF HUMAN RIGHTS. UNFAIR TRADE WAS ALSO A MAJOR CONCERN. CHINA HAD BEEN SINGLED OUT FOR PIRATING AMERICAN COPYRIGHTS AND PATENTS. THE AMERICANS WERE ALSO WORRIED ABOUT ARMS PROLIFERATION AND CONTINUED TO URGE CHINA TO EXERCISE RESTRAINT. THEY WANTED THE CHINESE GOVERNMENT TO ABIDE BY THE LETTER AND SPIRIT OF THE MTCR, AND TO SIGN THE NPT.
4.
THE PRESIDENT SAID THAT BILATERAL REPRESENATIONS ON THESE
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