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TRADE OFFICE HERE WHETHER THE GOVERNOR SHOULD WRITE TO SENATORS. WE HAVE AGREED THAT, ALTHOUGH THIS WOULD DO NO HARD, IT IS PROBABLY NOT NECESSARY: THE HKETO HAS, AS ALWAYS, BEEN ACTIVE ITSELF IN GETTING ACROSS HONG KONG'S ARGUMENTS.
EAGLEBURGER/QIAN QICHEN MEETING
4.
STATE TOLD ME RECENTLY THAT EAGLEBURGER WOULD MEET QIAN QICHEN BRIEFLY IN THE MARGINS OF THE UNGA IN NEW YORK THIS WEEK. EAGLEBURGER WOULD RAISE: (I) THE US/CHINA MARKET ACCESS TALKS, AND STRESS THE IMPORTANCE OF A SATISFACTORY CONCLUSION WHICH WOULD AVOID TRADE SANCTIONS, (II) THE F16 DEAL, ON WHICH HE WOULD EMPHASISE THE NEED FOR THE CHINESE TO AVOID OVER-REACTING, (III) NON-PROLIFERATION, WHERE IT WAS IMPORTANT TO KEEP THE CHINESE UP TO THE MARK, ALTHOUGH THERE WAS NO HARD EVIDENCE OF RECENT BREACHES, AND (IV) HUMAN RIGHTS, WHERE THE AMERICANS WERE BECOMING INCREASINGLY CONCERNED ABOUT THE CONTINUED DETENTION OF SHEN TONG.
MARKET ACCESS
5. I HAVE REMINDED BOTH STATE AND NSC OF OUR CONCERN THAT, IF THE MARKET ACCESS TALKS FAIL, AND THE US IMPOSES SANCTIONS ON CHINA, HONG KONG WOULD BE THE LOSER. I TOLD THEM WE HAD ALREADY PASSED DETAILS TO THE US CONSULATE IN HONG KONG, AND THE CASE WOULD BE MADE FULLY AT THE USTR HEARINGS THIS WEEK. BOTH STATE AND NSC SAID THEY UNDERSTOOD OUR CONCERNS. BOTH THOUGHT THAT, ALTHOUGH THE TALKS WOULD GO DOWN TO THE WIRE, AN AGREEMENT WOULD BE REACHED.
SIGNED S D PATTISON
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