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FM CANBERRA
TO IMMEDIATE FCO
TELNO 369
OF 14061OZ MAY 91
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INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG
MAB Нивопок
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71
021461
MDHIAN 6391
TOP COPY Q DIST?
INFO PRIORITY OTTAWA, TOKYO, ROME, SINGAPORE, PEKING, WASHINGTON
FCO FOR HKD
ва
YOUR TELNOS 890 AND 920 TO HONG KONG: MFN STATUS FOR CHINA
1.
I WELCOME THE IDEA OF A MESSAGE FROM YOU TO SENATOR EVANS THIS WILL BE PARTICULARLY TIMELY IN VIEW OF THE GOVERNOR
OF HONG KONG'S CURRENT VISIT TO AUSTRALIA (9-15 MAY) AND EVAN'S OWN VISIT TO CHINA IN APRIL. EVANS SAW THE GOVERNOR IN HONG KONG IN APRIL, AND AGAIN THIS WEEK IN CANBERRA.
2 =
ACCORDING TO MATERIAL PREPARED FOR THE GOVERNOR'S VISIT, THERE ARE ABOUT 250 AUSTRALIAN COMPANIES WITH OPERATIONS IN HONG KONG, EMPLOYING OVER 70,000 PEOPLE. IN THE MANUFACTURING SECTOR AUSTRALIAN INVESTMENT IN HONG KONG REACHED AUS DOLLARS 167 MILLION AT THE END OF 1989, MAKING AUSTRALIA THE SIXTH LARGEST SOURCE OF OVERSEAS INVESTMENT IN THE TERRITORY. RE-EXPORTS OF AUSTRALIAN ORIGIN GOODS THROUGH HONG KONG TO CHINA WERE VALUED
AT AUS DOLLARS 112 MILLION IN 1990. RE-EXPORTS OF CHINESE GOODS
TO AUSTRALIA VIA HONG KONG WERE AUS DOLLARS 802 MILLION IN THE SAME PERIOD.
3. SUBJECT OF THE MEN STATUS FOR CHINA CAME UP IN DISCUSSION
WITH AUSTRALIAN MINISTER FOR TRADE NEGOTIATIONS (BLEWETT) AT AUSTRALIAN FOREIGN MINISTER'S LUNCH FOR SIR D. WILSON ON 13 MAY. BLEWETT'S VIEW WAS THAT WITHHOLDING OF MFN STATUS FROM CHINA WOULD ON BALANCE DAMAGE AUSTRALIAN INTERESTS BY TENDING TO REDUCE CHINA'S
NEED FOR RAW MATERIALS IMPORTED FROM AUSTRALIA AS WELL AS
REDUCING AVAILABILITY OF FOREIGN EXCHANGE FOR PURCHASE BY CHINA OF OTHER AUSTRALIAN EXPORTS. SO PROPOSED MESSAGE SHOULD RECEIVE SYMPATHETIC ATTENTION.
BARDER
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