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British Embassy

Washington

4

27 September 1991

Ms K Saunders

Hong Kong Dept

FCO

Man Khas,

HKD 021/6

¡ - NOV1byl

3100 Massachusetts Ave N.W. Washington D.C. 20008-3600

Telephone: (202)

Telex: RCA 211427 or 216760-WUI 64224

feca 15/10

Facsimile: (202) 898-4255

HONG KONG/US RELATIONS

1.

As you know from our recent telephone conversations, the Prime Minister's visit to Hong Kong and the recent elections caused considerable press interest here. In general, I am afraid, the thrust has been to criticise the British government for not doing enough to introduce democracy in Hong Kong.

2. This has been picked up by Congress. On 18 September a handful of Senators introduced a resolution on Hong Kong. This noted that the British Government's aims were to make greater progress towards direct elections, up to and beyond 1997, and urged an accelerated introduction of democracy in Hong Kong before the 1995 elections and the transfer to Chinese sovereignty in 1997.

3.

On 20 September Senator McConnell (R-Kentucky) introduced a bill on US/Hong Kong relations. His Bill (the United States/Hong Kong Policy Act) urges the United States to establish ties with Hong Kong which would safeguard Hong Kong's autonomy after 1997 in economic, financial, trade, tourist, cultural and other areas. Among other things, the Bill recommends:

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maintenance of the Hong Kong Economic and Trade Office in the United States after 1997;

support for Hong Kong's participation in multilateral organisations;

the negotiation of bilateral economic agreements;

support for Hong Kong's access to sensitive technologies in accordance with COCOM rules;

the expansion of US/Hong Kong relations and exchanges in areas of culture, education, science and research (including giving Hong Kong status as a full partner in the Fullbright Programme);

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