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damage that non-renewal, or conditional renewal, of China's
MFN status would have on Hong Kong's economy. Congress voted on the issue on 25 February and sought to set
conditions for renewal. However, they failed to obtain the
two thirds majority vote necessary to override the expected
Presidential veto. The President needs to take a decision
on renewal by early June, and his veto of the congressional legislation is expected very soon. We continue to lobby both Congress and the Administration. Mr Baker has made
supportive comments on the importance of China's MFN status
for Hong Kong.
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