RESTRICTED
FM FCO
TO
IMMEDIATE WASHINGTON
TELNO 1197
OF 051324Z JULY 91
RESTRICTED
Pa
MANB 090
MFN
INFO PRIORITY UKMIS GENEVA, HANOI, HONG KONG, PEKING INFO PRIORITY UKREP BRUSSELS
167
042732
MDHOAN 6715
US UNDER SECRETARY'S CALL ON PUS, 4 JULY: MFN
RENEWAL FOR CHINA/TAIWAN/HONG KONG/VIETNAMESE MIGRANTS
MFN
1.
IT
IN TALKS WITH THE PUS ON 4 JULY, KIMMITT WARMLY APPLAUDED THE ACTION OF THE PRIME MINISTER, SECRETARY OF STATE AND PUS IN PUTTING ACROSS TO THE TOP LEADERSHIP OF THE SENATE AND CONGRESS AND TO OTHER VISITING SENATORS AND CONGRESSMEN THE DANGERS OF NOT RENEWING MEN FOR CHINA. MANY ON THE HILL DISCOUNTED THE ARGUMENTS PUT FORWARD BY THE ADMINSTRATION BECAUSE THEY WERE
SUSPICIOUS OF THE PRESIDENT'S GENERAL APPROACH TO CHINA. WAS GOOD THAT THEY SHOULD HEAR THE ARGUMENTS FIRMLY PUT FROM ANOTHER QUARTER BOTH AS REGARDS THE EFFECT ON DEVELOPMENTS IN CHINA AND THE IMPLICATIONS FOR HONG KONG/US INTERESTS THERE. THE ADMINISTRATION WERE NOW IN THE END GAME ON MFN. ISSUE CAME TO THE FLOOR OF THE HOUSE AT THE END OF THIS MONTH, IT MIGHT BE DIFFICULT FOR THE ADMINISTRATION TO PREVAIL. THEY WERE MORE OPTIMISTIC ABOUT THE SENATE, WHERE THEY WERE MAKING HEADWAY EG, WITH SENATOR BAUCUS. ONE POINT THEY WERE MAKING STRONGLY
WAS THAT SENATORS WOULD LOOK AT OTHER MEANS OF PUTTING PRESSURE ON CHINA AND NOT RELY ON THE MFN RENEWAL MECHANISM. ONE EMERGING SIDE-ISSUE, WHICH MIGHT COMPLICATE MATTERS, WAS PRESSURE IN THE SENATE/HOUSE FOR TAIWAN MEMBERSHIP OF GATT. HE WARNED THAT THE AMERICANS MIGHT NEED TO DISCUSS WITH US A FORMULA ON THIS SUBJECT. THE CHINESE AMBASSADOR IN WASHINGTON HAD ALREADY PUT DOWN THE STRONGEST MARKER. THE PUS TOOK NOTE.
HONG KONG AIRPORT
3. THE PUS BRIEFED KIMMITT ON THE AGREEMENT. KIMMITT SAID THAT THE US WOULD ISSUE A SUPPORTIVE STATEMENT AS SOON AS POSSIBLE. HE ASKED THAT WE GIVE THE AMERICANS EARLY NOTICE OF THE TIMING OF
THE PRIME MINISTER'S VISIT TO CHINA. HE ASSUMED THAT IT WOULD
NOT BE BEFORE KAIFU'S VISIT.
1
PAGE RESTRICTED