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THE GOOD THE BILL WAS TRYING TO ACHIEVE. THE REPORTING PROVISION WAS A PARTICULAR ODDITY IN OUR EYES AND, I THOUGHT A DOUBLE STUMBLING BLOCK WITH THE CHINESE. I WAS RELIEVED TO HEAR THAT IT WOULD BE REMOVED OR CHANGED.

5. I ASKED MCCONNELL WHETHER HE HAD BEEN ABLE TO EXPLAIN THIS BENEVOLENT MOTIVATION OF HIS BILL TO THE CHINESE IN WASHINGTON. WHEN HE AND HIS STAFFER CONFIRMED THAT THERE HAD BEEN NO CONTACT

I SUGGESTED EXPLAINING TO THE CHINESE THAT SOME AMENDMENTS TO US LAW WERE REQUIRED TO TAKE ACCOUNT OF HONG KONG'S POST-1997 STATUS AND THEREFORE TO ENSURE THAT THE JOINT DECLARATION WOULD BE FULLY IMPLEMENTED. MCCONNELL WILL BE SEEING ZHOU NAN ON 24 APRIL AND

SAID HE WOULD MAKE THIS POINT THEN.

6. ON MFN, I THANKED MCCONNELL FOR HIS SUPPORT FOR RETAINING CHINA'S STATUS. HE AGREED WITH MY ARGUMENT THAT MFN WITHDRAWAL

WOULD NOT ONLY DAMAGE HONG KONG BUT ALSO UNDERMINE THE FORCES FOR LIBERALISATION IN CHINA.

7. WE DISCUSSED VIETNAMESE MIGRANTS BRIEFLY MCCONNELL SAID THAT

HE EXPECTED THE US TRADE EMBARGO TO BE LIFTED AFTER THE US

PRESIDENTIAL ELECTIONS. I AGREED THAT THIS WOULD HELP WITH THE PROBLEM OF VIETNAMESE MIGRANTS. I TOLD HIM THAT WE HAD SUCCEEDED IN GETTING ACROSS A CLEAR MESSAGE BY IMPLEMENTING THE OCTOBER

1991 AGREEMENT WITH THE VIETNAMESE GOVERNMENT TO RETURN NEW SCREENED-OUT ARRIVALS. HE WAS SUITABLY IMPRESSED BY THE FACT THAT WE HAD ONLY SEVEN ARRIVALS SO FAR THIS YEAR.

COMMENT

8. MCCONNELL IS CLEARLY INTERESTED IN AND GENERALLY WELL-DISPOSED TOWARDS HONG KONG. HE SHOWED REASONABLE SENSITIVITY TO OUR

CONCERNS ABOUT CHINESE REACTION TO HIS BILL.

9. AFTER MY MEETING WITH HIM HE COMMENTED TO THE PRESS THAT QUOTE THE GOVERNOR IS NOT GOING TO TAKE A POSITION ON THE BILL. I DO

NOT EXPECT HIM TO AND FRANKLY I DO NOT WANT HIM TO UNQUOTE. WAS AS WE HAD AGREED.

WILSON

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