RESTRICTED

parsed to DTI.

NAB 041/2 M. Farmer

Mr

C22611

VISIT OF MR C ROBERTS (DTI) TO THE US: 12-16 NOVEMBER 1992

CHINA AND MFN: HONG KONG

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7/13

LINE TO TAKE

crob.usvis

Grateful for US acknowledgement and support

of Hong Kong's difficult position on this issue in the past.

Non-renewal of MFN would have serious

consequences for Hong Kong's economy.

We and Hong Kong Government support unconditional

renewal of China's MFN.

-

Conditional renewal of MFN eg targetting only products produced by state owned industries in China would also present serious problems for Hong Kong. Also, very difficult to identify such products as many goods are part produced in China and part produced in Hong Kong.

US interests in Hong Kong (which are considerable) would also be damaged by non or conditional

renewal.

RESTRICTED

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