CONFIDENTIAL

CONFIDENTIAL

Mine 09/12

FM FCO

RECE

TO PRIORITY HONG KONG

TELNO 1772

OF 301736Z DEC 92

DES INDEX

TOP COPY

-7 JAN 1992

STRY

(akon

INFO PRIORITY PEKING, WASHINGTON, UKREP JLG HONG KONG

017316

MDLOAN 4631

157

YOUR TELNO 2930: CHINA/MFN/HONG KONG

1.

THANK YOU FOR TUR.

2. WE DRAW THE CONCLUSION FROM THIS EXCHANGE THAT THE RIGHT APPROACH OVER THE NEXT FEW MONTHS WILL ESSENTIALLY BE A TWO-TRACK

ONE:

- IN PUBLIC, AND IN CONTACTS ON THE HILL, WE SHOULD CONTINUE TO ARGUE FOR UNCONDITIONAL MFN RENEWAL, FOR ALL THE FAMILIAR REASONS - IN PRIVATE, WE SHOULD DEVELOP OUR OWN THOUGHTS AND KEEP A DISCREET CONTACT WITH THE ADMINISTRATION ON WHAT SORT OF TOKEN CONDITIONS WOULD BEST PROTECT HONG KONG, IN THE CIRCUMSTANCES ENVISAGED IN PARA 5 OF TUR. WE IMAGINE THAT THERE WILL BE MANY IDEAS UNDER DISCUSSION ONCE CONGRESS STARTS TO FOCUS ON THE

ISSUE.

3.

AS YOU SAY, WE WILL NEED TO BE VERY CAREFUL TO MINIMISE THE RISK THAT THE SECOND TRACK COULD CUT ACROSS THE FIRST. WE IMAGINE THAT IF YOU PAY AN EARLY VISIT TO WASHINGTON, YOUR OWN EMPHASIS WILL BE EXCLUSIVELY ON THE FIRST TRACK.

HURD

YYYY

ΜΑΙΝ

.HK POLICY

HKD

PUSD

FED

64

LEGAL ADVISERS//MS BARRETT

./MS BROOKS AND MR GILES

DISTRIBUTION

65

NTCD

PLANNERS

RAD

PS

PS/MR GOODLAD

SIR J COLES

PAGE

1

CONFIDENTIAL

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