:

MAE ont

UNCLASSIFIED

-7 JAN 199.

DESI

INDE

Du

ar

(54)

175374

MDLIAN 2614

Mon file pls

UNCLASSIFIED

FM PEKING

TO PRIORITY FCO

TELNO 1748

OF 180933Z DECEMBER 92

INFO PRIORITY WASHINGTON, UKMIS NEW YORK, UKMIS GENEVA, MOSCOW INFO PRIORITY TOKYO, PARIS, BRUSSELS, HONG KONG

SINO-US RELATIONS

SUMMARY

1.

PROMINENT AND SELECTIVE COVERAGE GIVEN TO CLINTON'S STATEMENT CONNECTING MFN AND PROGRESS ON HUMAN RIGHTS. LOW-KEY REFERENCES TO F16. GENERALLY UPBEAT TONE ABOUT PROSPECTS FOR

SINO-US RELATIONS.

DETAIL

2.

THE CHINESE MEDIA HAVE GIVEN WIDESPREAD AND INCREASINGLY SELECTIVE COVERAGE TO PRESIDENT-ELECT CLINTON'S STATEMENT ON MFN AT HIS ECONOMIC CONFERENCE IN ARKANSAS ON 14 DECEMBER. THIS APPEARED IN THE 16 DECEMBER 'CHINA DAILY' AS A HEADLINE CLINTON: NO NEED TO REVOKE CHINA'S MFN'', AND THE BODY OF THE ARTICLE SAID THAT CLINTON 'DID NOT THINK IT WOULD BE NECESSARY TO REVOKE MFN STATUS IF PROGRESS CONTINUES ON HUMAN RIGHTS AND OTHER ISSUES''

3.

CHINESE FOREIGN MINISTER QIAN QICHEN IS REPORTED AS SAYING AT A RECEPTION ON 16 DECEMBER THAT CLINTON'S REMARKS ON MFN ''SQUARED WITH THE FACTS. OUR MFN STATUS IS A RECIPROCAL AND MUTUALLY BENEFICIAL ARRANGEMENT

INDISPENSABLE FOR TRADE TIES BETWEEN THE TWO COUNTRIES

4.

REPORTING ON THE VISIT BY THE US SECRETARY OF COMMERCE HAS BEEN NOTABLY UPBEAT AND SLANTS THE CLINTON REMARKS EVEN FURTHER. FRANKLIN IS REPORTED AS SAYING THAT THE US GOVERNMENT WAS STRIVING TO MAINTAIN PROGRESS (IN BILATERAL RELATIONS), WHICH IS DESCRIBED AS ECHOING ''A SPEECH BY CLINTON EARLIER THIS WEEK SUPPORTING EXTENDING MOST-FAVOURED NATION STATUS TO CHINA UNCONDITIONALLY''

5.

AT THE 16 DECEMBER RECEPTION QIAN IS REPORTED TO HAVE REFERRED TO THE F16 SALE IN LOW-KEY TERMS, SAYING THAT THE ISSUE WAS NOT OVER YET AND CHINA HOPED THAT THE TWO COUNTRIES COULD HOLD SPECIAL TALKS ON THE SUBJECT. HIS TONE ON THE PROPOSED SALE OF MIRAGE TO TAIWAN WAS MARKEDLY MORE AGGRESSIVE.

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