CONFIDENTIAL
036 MDHIAN 5697
WHAT IS BILATERAL ISSUE BETWEEN THE US AND CHINA. AS IN THE SPECIAL/SECTION 301 ISSUES, THERE WOULD BE DANGERS OF OUR GETTING CAUGHT IN THE CROSS FIRE, AND OF THE CHINESE QUESTIONING OUR MOTIVATION. WE ALSO BELIEVE THAT THE US ADMINISTRATION CAND MANY
IN CONGRESS) ARE ALIVE TO OUR INTERESTS IN THIS, AS IN OTHER U S/CHINA ISSUES. WE WILL NEVERTHELESS MONITOR THE SITUATION VERY CLOSELY AND KEEP IN MIND THE POSSIBILITY OF SOME ACTION SHOULD THE NEED ARISE.
WILSON
YYYY
MAIN
31
LIMITED
HKD
FED
NEWS D
NNNN
DISTRIBUTION
31
PS/LORD CAITHNESS
SIR J COLES
MR BURNS
PAGE 2 CONFIDENTIAL