Mr Paul, HKD

CONFIDENTIAL

WAB 20

RESU

3 MAY .091

ISTRY

GISTRY

@

China: MFN

The Secretary of State was grateful for your submission of 7 May. He agrees with the recommendations except as regards China. He thinks that we should tell the Chinese that we shall once again press the US to retain MFN because this is in the interests of Hong Kong. But our ability to do this effectively will be clouded this year by the open disagreement between HMG and the PRC on some important aspects of the future of Hong Kong. The sooner this disagreement can be overcome, the more cogent our lobbying will be.

The Secretary of State would be grateful for advice on this proposed line.

ди

8 May 1991

Cc:

PS/Lord Caithness

Sir J Coles

Mr Burns

Mr Burns, NAD

Mr Davies, FED

Mr Bone, ERD

(S L Gass)

CONFIDENTIAL

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