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Мав

MAR 09014

la

MAY 291

86

034225

MDLIAN 1577

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FM WASHINGTON

TO ROUTINE FCO

TELNO 1332

OF 162318Z MAY 91

INFO ROUTINE HONG KONG, PEKING, TOKYO, OTTAWA, CANBERRA

US/CHINA: MFN

SUMMARY

BUT

1. PRESIDENT BUSH DECLARES HIS PERSONAL SUPPORT FOR MFN. WHITE HOUSE SPOKESMAN EMPHASISES THAT THE FINAL DECISION HAS NOT YET BEEN TAKEN, AND DOES NOT RULE OUT SOME SORT OF CONDITIONALITY.

DETAIL

2. ON 15 MAY, FOLLOWING A MEETING WITH SENATE REPUBLICANS, PRESIDENT BUSH TOLD THE PRESS THAT HE WANTED TO SEE MFN CONTINUED, AND HAD MADE A STRONG PITCH FOR IT IN HIS DISCUSSIONS WITH SENATORS. HE SAID THAT, ALTHOUGH THERE WERE MAJOR PROBLEMS IN CHINA, THINGS WERE MUCH BETTER THAN THEY HAD BEEN IN 1975 (WHEN HE WAS AMBASSADOR IN PEKING). IT WAS ALSO IMPORTANT TO TAKE INTO ACCOUNT THE SUPPORT THE AMERICANS HAD FROM CHINA DURING THE GULF WAR.

3.

LATER IN THE DAY, HOWEVER, THE WHITE HOUSE SPOKESMAN (FITZWATER) TOLD THE PRESS THAT THE ADMINISTRATION HAD NOT FORMALLY REACHED A DECISION ON MFN. ASKED TO CLARIFY THE SITUATION ON 16 MAY FITZWATER SAID THE ADMINISTRATION WAS STILL ANALYSING THE SITUATION AND WAS ASSESSING THE RESULTS OF KIMMITT'S TRIP. A NUMBER OF OUTCOMES WERE POSSIBLE, INCLUDING QUOTE ADDING CONDITIONS, OR AT LEAST EXPRESSING OUR VIEWS ABOUT HUMAN RIGHTS PROGRESS IN CHINA AND OTHER MATTERS UNQUOTE. 4. IN A SEPARATE DEVELOPMENT THE SENATE MAJORITY LEADER MITCHELL INTRODUCED LEGISLATION ON 16 MAY THAT WOULD TERMINATE MFN TO CHINA AFTER SIX MONTHS UNLESS CERTAIN CONDITIONS WERE MET. THE CONDITIONS INCLUDE THE RELEASE OF ALL POLITICAL PRISONERS IN CHINA, THE LIFTING OF RESTRICTIONS ON EMIGRATION, A CURB ON SALES OF WEAPONS, AND A REDUCTION OF THE US/CHINA TRADE IMBALANCE.

COMMENT

5.

PRESIDENT BUSH'S PERSONAL SUPPORT FOR MFN WAS ALREADY WELL KNOWN. BUT THE UNFORTUNATE IMPRESSION LEFT BY HIS REMARKS AND FITZWATER'S SWIFT CLARIFICATION - WAS THAT HE HAD SPOKEN PREMATURELY SINCE HE DID NOT NEED TO ANNOUNCE A DECISION UNTIL 3 JUNE, AND, IN THEORY AT LEAST, THE ADMINISTRATION WERE STILL

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