CONFIDENTIAL

the Assistant Foreign Minister, Jiang Enzhn, at the outset

of the talks.

5.

I hope the Secretary of State can agree however that some of the points in the draft telegram attached to my submission can be retained, particularly those relating to human rights:

much of the solution lies in Chinese hands; we cannot

expect to win the battle simply by calling attention to Hong

Kong's needs

-

China must recognise that, not just the US, but the West

in general is looking for changes in China's human rights

practices; China cannot expect to reap the benefits of an open world economy without accepting some of the rules by

which the rest of the world plays

- we judge that only very clear gestures by the Chinese now

(going beyond allowing Australian and French teams to examine their performance) will ensure a passage for MFN;

- we also consider that some gestures on intellectual property protection will probably be required.

ARQ

A R Paul

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we should not he too

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the aisport. The Chinese will all to easily react badly to

BODAES/2

CONFIDENTIAL

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