CONFIDENTIAL
030102
MDHOAN 90
CONFIDENCE IN HONG KONG WILL BE ENHANCED IF BRITAIN AND CHINA CAN COOPERATE EFFECTIVELY TO MANAGE THE TRANSITION TO CHINESE
SOVEREIGNTY.
YOU MAY ALSO WISH TO NOTE THAT HONG KONG WILL BE SERIOUSLY AFFECTED IF THE UNITED STATES DOES NOT TO RENEW CHINA'S MOST FAVOURED NATION TRADE STATUS. A DECISION ON THIS IS EXPECTED SHORTLY. WE HAVE THEREFORE LOBBIED THE US ADMINISTRATION IN SUPPORT OF RENEWAL OF THAT STATUS BECAUSE OF HONG KONG. WE HAVE TOLD THE CHINESE GOVERNMENT THAT WE ARE DOING SO: BUT WE HAVE ALSO EXPLAINED THAT THE PROSPECTS OF THIS LOBBYING SUCCEEDING WOULD BE ENHANCED IF OUR PUBLIC DIFFERENCES OVER THE AIRPORT COULD BE RESOLVED QUICKLY. YOU MAY WISH TO MAKE THIS POINT IF AN OPPORTUNITY ARISES.
ENDS
HURD
YYYY
MAIN
46
LIMITED
HKD
FED
WED
ERD
NNNN
DISTRIBUTION
46
PS
PS/LORD CAITHNESS SIR J COLES
MR BURNS
2
PAGE CONFIDENTIAL