RESTRICTED
48
016014
MDLIAN 0250
7
RESTRICTED
FM PEKING
TO ROUTINE F C O
TELNO 674
OF 130647Z MAY 91
INFO ROUTINE WASHINGTON, HONG KONG, BTC HONG KONG
INFO ROUTINE UKREP JLG HONG KONG
TOP COPY Q DIST?
US/CHINA: MFN
SUMMARY
1.
LI PENG MEETS PRESIDENT OF US-CHINA BUSINESS COUNCIL. LI SPOKE IN STANDARD TERMS ON MFN BUT ALSO SAID THAT THE REMOVAL OF MFN WOULD CONFLICT WITH US INTEREST IN SEEING CHINESE REFORMS CONTINUE. MFA SPOKESMAN ALSO SPOKE ON MEN. THE PUBLISHED VERSION DIFFERED CONSIDERABLY FROM WHAT HE SAID.
DETAIL
2.
PREMIER LI PENG MET ROGER SULLIVAN, THE PRESIDENT OF THE US-CHINA BUSINESS COUNCIL ON 9 MAY, AS WELL AS SULLIVAN'S SUCCESSOR DONALD ANDERSON. LI SAID THE STANDARD THINGS ABOUT THE REMOVAL OF MFN STATUS (INCLUDING THAT THIS WOULD DAMAGE HONG KONG) BUT ADDED THAT IT WOULD BE IN CONTRADICTION TO US HOPES THAT CHINA'S REFORM AND OPEN DOOR POLICIES WOULD CONTINUE. HE WENT ON TO SAY THAT THESE POLICIES WOULD CONTINUE NOTWITHSTANDING AS THEY WERE IN ACCORD WITH CHINA'S BASIC NEEDS.
3.
SEPARATELY THE MFA PRESS SPOKESMAN SAID THAT THE REMOVAL OF MFN WOULD NOT ONLY AFFECT US EXPORTS TO CHINA AND CHINESE EXPORTS TO THE US BUT WOULD ALSO DAMAGE US INVESTMENT IN CHINA. HE SAID THAT BILATERAL TRADE VOLUME HAD GROWN FROM 2.45 BILLION US DOLLARS IN 1979 TO 11.76 BILLION US DOLLARS IN 1990. THIS GROWTH WAS IN THE INTERESTS OF BOTH SIDES. REMOVAL OF MFN STATUS WOULD DAMAGE NOT ONLY SINO-US RELATIONS BUT ALSO THE US'S ECONOMIC RELATIONS WITH THE DYNAMIC ASIA-PACIFIC REGION. HONG KONG TOO WOULD SUFFER. NONETHELESS REMOVAL WAS NOT TO BE FEARED. MFN WAS NOT, HE SAID, A FAVOUR GIVEN BY ONE COUNTRY TO ANOTHER.
PUBLISHED ACCOUNTS OF WHAT WU SAID THEN DIFFER FROM WHAT HE ACTUALLY DID SAY. PEOPLE'S DAILY CLAIMS THAT WU THEN SAID THAT CHINA HAD ALWAYS ATTACHED IMPORTANCE TO ITS RELATIONS WITH THE
4.
1
PAGE
RESTRICTED