BY FAX

13 December 1991

British Embassy Washington

Zzu

Ms J Clarke OT2/1

DTI

Dan Jan,

US-CHINA: SPECIAL 301

1.

Whir ada

Commercial Department

3100 Massachusetts Ave N.W.

Washington D.C. 20008-3600

Telephone: (202)

Telex: RCA 211427 or 216760-WUI 64224

Facsimile: (202) 898-4224

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I have discussed with Peter Lo, Head of the Hong Kong Trade Office here, further action in USTR's proceeding to draw up a retaliation list (my letter of 27 November).

2.

Peter and I agreed that the Hong Kong Office should take the lead. We in the Embassy will speak to our contacts in parallel. But to avoid confusion over Hong Kong's autonomy in trade matters, we will not go in to see the Administration in company with the Hong Kong Office.

3.

Peter said that HKG were working on a statistical analysis of the published list. This would be conveyed formally, with comments, by HKG probably to the US Consulate-General in Hong Kong. We agreed that would be the only formal intervention by either government, but both he and I would of course base ourselves on it when speaking to the Administration.

4.

There is a hearing on 6 January. Peter said that his · authorities were casting round for an effective speaker from Hong Kong's private sector to come to Washington to speak.

US

importers would also speak but Peter did not think it necessary or productive to try to concert too closely with them: their interests were not identical with Hong Kong's, though of course their evidence was likely to be generally helpful.

5. A decision by USTR_now seems likely in mid to late January, or even early February. It seems unlikely now that the Senate will get down to serious business, that is to the Conference agreement on MFN for China, until the end of January at the earliest. So we have a little more time than when I last wrote. Peter and I will time our interventions with the Administration for maximum effectiveness: at the moment that seems likely to mean mid-January.

/6.

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