CONFIDENTIAL

Mins 091/2

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 1343

OF 081717Z SEPTEMBER 92

INFO PRIORITY PEKING, WASHINGTON

011305

MDHOAN 0319

TOP COPY Q DIST?

US/CHINA: SECTION 301 MARKET ACCESS NEGOTIATIONS

1. DURING A CALL BY ZHENG (MINISTER AT THE CHINESE EMBASSY) ON 8 SEPTEMBER ON OTHER MATTERS, HUM (AUSS) TOOK THE OPPORTUNITY TO RAISE OUR CONCERN ABOUT US/CHINA TRADE FRICTION AND REPORTS THAT THE US WERE CONTEMPLATING SECTION 301 ACTION AGAINST CHINESE IMPORTS.

2. HUM SAID THAT ALTHOUGH THIS WAS A BILATERAL MATTER BETWEEN THE US AND CHINA IN WHICH WE HAD NO INTENTION OF INTERFERING, WE WERE VERY CONSCIOUS OF THE IMPLICATIONS FOR HONG KONG AND THE THREAT TO THE HONG KONG ECONOMY. WE HOPED THESE COULD BE BORNE IN MIND BY THE CHINESE GOVERNMENT. WE WERE ALSO IN CLOSE CONTACT WITH THE US AUTHORITIES. HE HOPED THAT THE TWO SIDES COULD REACH A SATISFACTORY AGREEMENT BEFORE THE DEADLINE OF 10 OCTOBER.

3. ZHENG SAID HE HOPED THAT THIS MATTER WOULD BE RESOLVED SOON.

HE WOULD CONVEY OUR CONCERNS TO PEKING.

HURD

YYYY

ΜΑΙΝ

28

HKD

NAD

ERD

FED

DISTRIBUTION

28

PS/MR GOODLAD SIR J COLES

MR HUM

NNNN

1

PAGE

CONFIDENTIAL

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