RESTRICTED
137221
MDLIAN 2084
THESE VISITS WOULD PUSH THE PROCESS FORWARD.
5.
ROY MADE THE SAME POINTS ABOUT POSSIBLE EXTENSION OF THE SPECIAL 301 INVESTIGATION DEADLINE AS MASSEY (PARA 4 OF WASHINGTON TUR). HE THOUGHT THAT IF RETALIATORY MEASURES WERE TAKEN THEY
WOULD START IN THE SPRING: IF THEY WERE DELAYED UNTIL THE AUTUMN THE PRESIDENTIAL ELECTION CAMPAIGN WOULD BE IN FULL SWING.
THE US WOULD CALCULATE THE AMOUNT LOST TO THE US BECAUSE OF PIRACY AND INTRODUCE SANCTIONS TO BLOCK AN EQUIVALENT AMOUNT OF
CHINA TRADE. THE AIM WOULD BE TO AVOID ADVERSE EFFECTS ON HONG
KONG BUT IN THE REAL WORLD THERE WAS BOUND TO BE SOME IMPACT. ONE DANGER TO HONG KONG WOULD BE IF CHINA RETALIATED, THUS ESCALATING THE ISSUE. THAT SAID, THE US VIEW WAS THAT THE MINISTRY OF FOREIGN RELATIONS AND TRADE WERE TRYING TO MOVE
THINGS IN THE RIGHT DIRECTION BUT WOULD NOT BE ABLE TO DO SO WITHOUT US PRESSURE. CHINESE OFFICIALS HAD ADMITTED PRIVATELY
THAT US ACTION WAS IN FACT HELPING LI LANQING PULL THE DOMESTIC
MINISTRIES INTO LINE.
BAYNE LATER CALLED ON MOFERT DEPUTY DIRECTOR GENERAL OF EUROPEAN DEPARTMENT, HU CHUSHENG, AND DESCRIBED THE AREAS IN WHICH CHINA WOULD NEED TO MAKE PROGRESS BEFORE ENTERING GATT.
HU TOOK THIS CALMLY AND WITHOUT DEMUR.
6 =
MCLAREN.
YYYY
DISTRIBUTION
73
ΜΑΙΝ
72
LIMITED
HKD
FED
RAD NEWS D
PS
NAD
PS/LORD CAITHNESS
ECONOMIC ADVISERS
ERD
JOINT DIRECTORATE
EAPD/ODA
PS/PUS
SIR J COLES
MR BAYNE
MR MILES
MR BURNS
ESED
ADDITIONAL
1
PAGE
DTI/ASH HSE
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