CONFIDENTIAL
112700
MDHOAN 164
SENATOR JAKE GARN
202-224-5444
SENATOR CHARLES GRASSLEY 202-224-3744
SENATOR JAMES JEFFORDS
SENATOR TRENT LOTT
202-224-5141
202-224-6253 202-224-6142
SENATOR STEVE SYMMS
3. IN DISCUSSING MATTERS FURTHER WITH THE SENATORS, YOU MAY WISH TO DRAW UPON THE MATERIAL CONTAINED IN PREVIOUS TELEGRAMS SENT TO YOU ON THIS SUBJECT - OUR TELNO 1212 AND HONG KONG TELNO 915. THE ARGUMENTS AGAINST CONDITIONALITY ARE PERHAPS THE MOST DIFFICULT TO ANSWER (SEE HONG KONG TELNO 1803). THE KEY POINT IS THAT ANY CONDITIONS WHICH CHINA MIGHT REJECT OR WHICH ARE OPEN TO INTERPRETATION (IE 'IMPROVING THEIR HUMAN RIGHT'S RECORD) WILL LEAD TO GREAT UNCERTAINTY AS TO THE FUTURE. UNCERTAINTY IN THE BUSINESS CLIMATE MEANS REDUCED INVESTMENT AND THIS WOULD BE ALMOST AS SERIOUS FOR HONG KONG AS A STRAIGHT DECISION NOT TO RENEW MFN STATUS AT ALL. THIS IS WHY WE HAVE ARGUED THAT THERE SHOULD BE NO CONDITIONS ATTACHED.
HURD
YYYY
ΜΑΙΝ
72
LIMITED
HKD
FED
NAD
ERD
DISTRIBUTION
72
RAD
NEWS D
PS
PS/LORD CAITHNESS
PS/PUS
JOINT DIRECTORATE
EAPD/ODA
SIR J COLES
MR BAYNE
ECONOMIC ADVISERS
MR MILLS
ESAU
MR BURNS
ESED
NNNN
2
PAGE CONFIDENTIAL