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071437
MDHIAN
4
US THAT THERE WAS NO CHANGE IN CLINTON'S POSITION.
4.
IT IS STILL TOO EARLY TO SAY HOW CLINTON WILL HANDLE THE MFN ISSUE. HE HAS STILL LEFT ALL HIS OPTIONS OPEN. MANY OF OUR) DEMOCRATIC CONTACTS ON THE HILL THINK HE WILL ADOPT A CAUTIOUS APPROACH. THEY HAVE ALREADY BEGUN TO SPECULATE THAT CLINTON MIGHT WAIT UNTIL JUNE, AND THEN RENEW MFN FOR A YEAR AT THE SAME TIME/ HE WOULD MAKE CLEAR, EITHER BY EXECUTIVE ORDER OR BY PRESIDENTIAL / STATEMENT THAT SUBSEQUENT RENEWAL WOULD DEPEND ON CHINESE PROGRESS OVER HUMAN RIGHTS, MARKET ACCESS, AND NON-PROLIFERATION.
5. HONG KONG TELNO 2720: WE AGREE THAT THE KEY IS TO ENSURE THAT~: CLINTON LEAVES HIMSELF MAXIMUM DISCRETION IN DECIDING WHETHER CHINA MEETS CONDITIONS FOR RENEWING MFN. OUR AIM THEREFORE WOULD BE TO TRY TO ENSURE THAT CLINTON AVOIDS LEGISLATION SETTING TOUGH CONDITIONS. AS HONG KONG POINT OUT, ANY SUCH LEGISLATION EVEN IF ITS APPLICATION IS DELAYED - WOULD UNDERMINE CONFIDENCE IN HONG
KONG. WE WILL CONTINUE TO MAKE THESE POINTS TO OFFICIALS AND
CONGRESS HERE.
-
MEYER
YYYY
DISTRIBUTION
74
ΜΑΙΝ
73
.MFN AND HONG KONG HKD
RAD
EASD/ODA
ECONOMIC ADVISERS
PS
ERD
ESED
FED
PS/MR GOODLAD
PS/PUS
SIR J COLES
JOINT DIRECTORATE
MR CROWE
NAD
NEWS D
MR MILES
MR HUM
ADDITIONAL
1
DTI//MR MURRAY OT2/3
2
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