CONFIDENTIAL
J S Wall Esq CMG LVO
10 Downing Street
London
SW1A
MOST FAVOURED NATION STATUS FOR CHINA: EFFECTS ON HONG
KONG
When the Prime Minister met President Bush in Bermuda in March he flagged up our concern over the effect non-renewal of China's MFN status would have on
Hong Kong. The Foreign Secretary believes that we have now reached the point at which a message from the Prime Minister to the President on this is needed.
Our Embassy in Washington advise that although President Bush has until 3 June to reach his decision on MFN, he is likely to make an announcement sooner, possibly as early as next week. He is likely to recommend renewal. But it is not certain that the
President can overcome the opposition to this in the
Congress. The Administration might therefore
(reluctantly) have to look at some form of
conditionality, in order to secure renewal for a further
year.
DENAAY
CONFIDENTIAL