CONFIDENTIAL
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021210
MDHIAN 3242
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CONFIDENTIAL
FM WASHINGTON
TO IMMEDIATE FCO
TELNO 1770
OF 282348Z JUNE 91
INFO PRIORITY HONG KONG, PEKING, UKREP JLG HONG KONG, ACTOR
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YOUR TELNOS 1155/6 (NOT TO ALL): CHINA/US RELATIONS: MFN
SUMMARY
1.
BOTH SENATE AND HOUSE COMMITTEES SEND FORWARD LEGISLATION WHICH WOULD IMPOSE CONDITIONS ON MFN RENEWAL (IN 1992) TO THE FLOOR OF CONGRESS. RECOMMEND THAT INSPIRED PQ BE TABLED IN WEEK BEGINNING 1 JULY SO THAT WE CAN CIRCULATE THE PRIME MINISTER'S REPLY TO KEY CONGRESSMEN BEFORE THE FLOOR DEBATES, THE FIRST OF WHICH IS EXPECTED ON 10 JULY.
DETAIL
2.
THE HOUSE WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE CONSIDERED ON 26 AND 27 JUNE RESPECTIVELY DRAFT LEGISLATION WHICH WOULD IMPOSE CONDITIONS ON THE RENEWAL OF CHINA'S MFN STATUS. THE HOUSE COMMITTEE APPROVED A BILL (HR 2212) THAT WOULD EXTEND MFN STATUS FOR ANOTHER YEAR BUT WOULD MAKE RENEWAL BEYOND THEN CONDITIONAL UPON REFORMS TO BE IMPLEMENTED BEFORE THEN ON HUMAN RIGHTS, NUCLEAR AND MISSILE EXPORTS, FORCED LABOUR AND ABORTION (SIC). THE SENATE COMMITTEE VOTED ON STRICT PARTY LINES (11 DEMOCRATS, 9 REPUBLICANS) TO SEND FORWARD THE MITCHELL BILL (S1367) WHICH WOULD MAKE MFN RENEWAL BEYOND JULY 1992 CONDITIONAL AMONG OTHER THINGS UPON RELEASE BY CHINA OF POLITICAL PRISONERS, AN END TO THE EXPORT TO THE US OF PRODUCTS PRODUCED BY FORCED LABOUR, AN END TO ARMS SALES TO SYRIA, PAKISTAN AND IRAN, AND COMPLIANCE WITH INTERNATIONAL AGREEMENT ON HONG KONG. THE COMMITTEE DID NOT, HOWEVER RECOMMEND FAVOURABLE TREATMENT FOR THE BILL SINCE THE CHAIRMAN WAS UNABLE TO MUSTER THE NECESSARY VOTES IN FAVOUR. THE FACT THAT ALL REPUBLICANS IN THE SENATE FINANCE COMMITTEE SUPPORTED THE ADMINISTRATION'S NO-CONDITIONS POLICY AND THAT DEMOCRATIC SUPPORT FOR CONDITIONAL RENEWAL WAS INSUFFICIENT TO MUSTER A RECOMMENDATION IN SUPPORT OF THE MITCHELL BILL IS SEEN HERE AS AN ENCOURAGING SIGN FOR THE ADMINISTRATION.
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THE TIMETABLE FOR CONGRESSIONAL CONSIDERATION OF THIS DRAFT
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CONFIDENTIAL