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8/7/49,

Mais apt to NAS

WALKED

168

LONDON ECONOMIC SUMMIT: PRIME MINISTERÉS BILATERAL WITH

PRESIDENT BUSH: 14 JULY

CONTRIBUTION TO PS/PS NO. 10 LETTER

HONG KONG: RENEWAL OF MFN STATUS FOR CHINA

The Prime Minister told President Bush on 23 May that US

non-renewal of MFN status for China would do serious damage to Hong Kong. The President was sympathetic and encouraged

the Prime Minister to lobby Congressmen.

The Prime Minister might say:

-

Our people have been co-operating effectively in

Washington. Sir Antony Acland wrote to key Congressmen on my behalf. Now circulating to key Senators a statement I made last week (answer to inspired PQ). Intend to keep up

pressure.

-

Good agreement on Hong Kong airport: shows the Chinese can be brought to see reason. Agreement and prospect of closer co-operation with China have boosted confidence in

Hong Kong.

effect.

Non-renewal of MFN status would have reverse

-

Conditional renewal of MFN almost as bad: uncertainty.

JIFAAX/1

TG

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