CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 1523
OF 221819Z OCTOBER 92
AND TO PRIORITY PEKING
INFO ROUTINE WASHINGTON
CONFIDENTIAL
78
166652
MDLOAN 9411
Mi3 091/2 маз
TOP COPY Q DIST?
ра
CHINA/MFN: LOBBYING A CLINTON ADMINISTRATION
1.
WE ARE FAXING TO ACTION ADDRESSEES A COPY OF A LETTER FROM THE MINISTER IN WASHINGTON TO SIR J COLES CONSIDERING HOW TO PLAY
THE HAND ON MEN WITH A CLINTON ADMINISTRATION.
2.
WASHINGTON'S ASSESSMENT IS THAT CLINTON COULD NOT SIMPLY DO NOTHING ON MFN AND THAT HE WILL WISH TO MARK HIS POLICY OUT FROM THAT OF PRESIDENT BUSH IN SOME WAY. SO THE ISSUE IS WHETHER THERE ARE ANY IDEAS WE CAN FEED IN TO AN INCOMING CLINTON ADMINISTRATION THAT WOULD SATISFY THE NEED FOR SOME ACTION IN
THIS AREA WHILE MINIMISING THE DAMAGE TO HONG KONG.
3. WE WOULD WELCOME VIEWS FROM ACTION ADDRESSEES. OUR INITIAL THOUGHTS ARE:
WE COULD SUGGEST THAT ANY SANCTIONS SHOULD TARGET ONLY PRIMARY EXPORTS, SUCH AS COAL, STEEL, GRAIN AND WOOD. THESE DO NOT, WE BELIEVE, PASS THROUGH HONG KONG. BUT WE ALSO RECOGNISE THAT THE US MAY NOT IMPORT MUCH OF THESE PRODUCTS FROM CHINA.
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WE COULD EXPLORE WHETHER A MEANINGFUL DISTINCTION COULD BE DRAWN BETWEEN (A) GOODS MADE BY CHINESE/HONG KONG JOINTLY OWNED FACTORIES OR HONG KONG OWNED FACTORIES AND (B) OTHERS. EXCLUSION OF THE FORMER COULD REDUCE THE IMPACT.
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WE COULD ARGUE THAT THE SOUTHERN CHINESE PROVINCES OF GUANGDONG HAINAN AND FUJIAN SHOULD BE EXCLUDED FROM ANY MEASURES, ON THE BASIS THAT THEY WERE CLOSEST TO PRACTISING OPEN MARKET POLICIES. SOME IN CONGRESS MIGHT SEE THIS AS ATTRACTIVE IN INSULATING TAIWAN FROM COLLATERAL DAMAGE AS WELL.
- WE COULD THEORETICALLY AGAIN EXPLORE WHETHER IT IS FEASIBLE TO HAVE A PROVISION EXCLUDING ANY GOODS EXPORTED OR REEXPORTED THROUGH HONG KONG. THERE IS OF COURSE MUCH SCOPE TO CIRCUMVENT SUCH A PROVISION.
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