(v)

POLICY IN CONFIDENCE

the extent to which other South East Asian countries had come to be dependent upon Hong Kong for their own economic well being.

The Uni

Etes' View of 1997

The most recent view of the United States' administration is that the licensing regime to be applied to Hong Kong after

1997 is a "political concern quite distinct from concerns

about the effectiveness or otherwise of Hong Kong's export

licensing regime". It is far from clear just what this

political concerns amounts to, but it seems to embrace uncertainty about China's intentions, the practical consequences of 1997 and the difficulties envisaged of making concessions now and having to withdraw them in the light of

political development.

To the impartial it might seem that the United States had

never adopted a rational political posture towards the Soviet

bloc, or any of its constituent parts, and that that irrationality was compounded in the case of China by an

emotional hang-up which made the United States more likely to

take a liberal view of trade with China than with other parts

of the Soviet bloc, provided it did nothing (as it did do manifestly at Tiananmen Square) to upset the liberal American conscience. The game of second guessing the attitude of the

United States to China in 1997 is one that should fill all but

the most intrepid observer of the American body politic with

the upmost caution and concern. At one extreme China might no

longer be a COCOM proscribed country; at the other it could be

the only one left! Given the age of the Chinese leadership it is possible that the issue will become clear in the next year

or two.

Whose

view?

The Position of the Soviet Union in 1997

Quite frankly it would be difficult to think of a worse time since 1930 to seek to look forward to developments in the Soviet Union. It is conceivable that after the present convulsions the Soviet Union may emerge stronger politically, still incredibly weak economically and possibly no longer deemed to be any more of a threat than any other large and

POLICY IN CONFIDENCE

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