RESTRICTED
FM FCO
TO PRIORITY HONG KONG
TELNO 1207
OF 10172OZ AUG 92
RESTRICTED
041
113672
MDLOAN 3270
Mars calle TOP COPY Q DIST?
INFO ROUTINE WASHINGTON, PEKING, BTC HONG KONG
CHINA'S MFN
1. WE NOTE FROM PATTISON'S (WASHINGTON) TELELETTER OF 4 AUGUST (COPIED TO BRADLEY) THAT THE PELOSI BILL THREATENS SANCTIONS TARGETTED AGAINST CHINESE STATE CONTROLLED INDUSTRIES. WE ASSUME THAT STATE-CONTROLLED CHINESE EXPORTS TO THE US REMAIN MORE VALUABLE THAN PRIVATE SECTOR EXPORTS, THOUGH WE ARE UNCERTAIN INTO WHICH CATEGORY THE MAJORITY OF THE LARGE FOREIGN-FUNDED JOINT VENTURES IN THE SOUTH WOULD FALL. WE WONDER WHETHER YOU HAVE MADE ANY ASSESSMENT OF THE POSSIBLE DAMAGE THAT THIS SELECTIVE TARGETTING WOULD HAVE ON THE HONG KONG ECONOMY? IMAGINE THAT ENFORCEMENT DIFFICULTIES FOR THE US, AND OPPORTUNITIES FOR THE CHINESE TO DISGUISE THE ORIGIN OF EXPORTS TO THE US, COULD ALSO PUT GENUINE PRIVATE SECTOR EXPORTS AT RISK.
CHALKER
WE
YYYY
MAIN
75
.ASIA/PACIFIC ECONOMIC
HKD
ERD
ECD (E)
ECONOMIC ADVISERS
FED
JOINT DIRECTORATE NAD
PLANNERS
SEAD
DISTRIBUTION
80
SPD
PS
PS/MR GOODLAD
PS/MR HOGG
MR CROWE
SIR J COLES
MR BEAMISH
MR HUM
MR BONE
MR MASEFIELD
1
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ADDITIONAL
5
DTI//HD/EEP MR COOKE DTI//OT4 MR HAMPTON
DTI//OT2 MR LOVE
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