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FM PEKING
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TELNO
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OF 060834Z NOVEMBER 91
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INFO ROUTINE HONG KONG, B T C HONG KONG INFO ROUTINE OVERSEAS TRADE DIVISION DTI INFO ROUTINE UKREP BRUSSELS, WASHINGTON
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WASHINGTON TELNO 2845. U S/CHINA TRADE ISSUES.
1.
I ACCOMPANIED BAYNE (DUS) AND BROADBENT (ECONOMISTS) IN A CALL ON THE US AMBASSADOR, STAPLETON ROY, ON 5 NOVEMBER.
WE HAD NOT THEN SEEN T U R. ROY COVERED MUCH THE SAME GROUND AS MASSEY.
2.
ROY SAID THAT THERE HAD BEEN PROGRESS ON BILATERAL TRADE ISSUES IN THE LAST TWO MONTHS. INITIALLY UNPRODUCTIVE CONTACTS ON MARKET ACCESS AND INTELLECTUAL PROPERTY HAD GAINED SUBSTANCE DURING THE MASSEY VISIT. THERE WAS STILL A GAP BETWEEN THE CHINESE AND U S POSITIONS ON MARKET ACCESS, BUT ROY BELIEVED THE PROBLEMS NOW TO BE ESSENTIALLY ONES OF TIME AND SCALE. HE THOUGHT PRESSURE OVER THE TAIWAN/GATT ISSUE HAD LED THE CHINESE INTO ADDRESSING SOME OF THE PREREQUISITES FOR THEIR OWN ENTRY INTO GATT: TRANSPARENCY, TARIFFS, THE LICENSING SYSTEM, AND USE OF REGULATORY MEASURES TO RESTRICT TRADE.
3. ROY ADDED THAT IN ORDER TO BE ABLE TO SUPPORT CHINA'S REENTRY TO GATT, THE US WOULD REQUIRE THE CHINESE TO IMPLEMENT SOME CONCRETE STEPS NOW TO BRING TRADING PRACTICES INTO LINE WITH GATT REQUIREMENTS AND TO SET A TIMETABLE FOR MEASURES TO ADDRESS THE REMAINING ISSUES. THE CHINESE HAD INDICATED THEIR WILLINGNESS TO ACT ACCORDINGLY.
*
4. AS REGARDS THE SPECIAL 301 CASES, THE CHINESE HAD TAKEN SOME POSITIVE STEPS ON INTELLECTUAL PROPERTY MATTERS. BUT THEY HAD NOT GONE FAR ENOUGH TO SATISFY U S CONCERNS, FOR INSTANCE ON ''PATENT PROTECTION FOR BOTH THE PROCESS AND THE PRODUCT'' THE US WOULD REQUIRE FIRM COMMITMENTS THAT CHINA'S PRACTICES WOULD BE CHANGED. ROY EXPECTED MOFERT MINISTER LI LANQING TO MEET CARLA HILLS IN THE MARGINS OF THE APEC MEETING IN SEOUL. HE ALSO THOUGHT THAT BAKER WOULD RAISE INTELLECTUAL PROPERTY AND MARKET ACCESS ON HIS VISIT TO PEKING LATER THIS MONTH.
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