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g Kong's confidence through having US support. The disadvantages, I imagine, would be:

(i)

it

depending on how the condition was framed, might make it more rather than less likely that Congress would refuse to renew MFN status;

(ii)

if MFN status was refused, that would damage Hong Kong;

(iii)

if MFN status was refused, the stakes would be upped in the Anglo-Chinese row over Hong Kong and the risk of Chinese pressure on Hong Kong would be exacerbated.

I am copying this letter to Jeremy Heywood (HM Treasury), Peter Smith (Department of Trade and Industry) and Melanie Leech (Cabinet Office).

are

Zar

Prophe

J S WALL

Richard Gozney Esq

Foreign and Commonwealth Office

CONFIDENTIAL

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