Mr Davies, FED

MWB 040/4

99014

RESTRICTED

FROM:

Sir John Coles

DATE:

29 April 1991

CC:

Mr Burns

Mr Paul, HKD

Mr Burns, NAD

Mr Bone, ERD

X

CHINA: MFN STATUS

1.

Please see the attached cutting from the "Herald Tribune" of 27 April which suggests that there may be more opposition in the United States this year than last to the renewal of Chinese MFN status. I imagine that, following Mr Kimmitt's imminent visit to Peking to discuss this issue, the US Administration will begin to formulate its position.

2.

Non-renewal would of course have quite serious implications for Hong Kong and would come at an awkward time when Hong Kong has a number of other major problems.

3. I should like to hold a meeting on Thursday or Friday this week (when Mr Burns has returned from China) to consider what action we should take with the US Administration and perhaps others and whether there is any way in which Hong Kong could be shielded from the effects of US decision not to renew.

4.

-

a

My PA will be in touch to arrange a time. Please consider whether anyone in addition to the recipients of this minute should be invited to attend. It will be helpful to have a note of the present situation as a basis for discussion.

JC1ABO

fol holes.

JOHN COLES

Discord then

morning, Isit, fecrable?

'X'

RESTRICTED

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