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us to make. The problem with a statement is of course that it would alienate Congress and invite charges of kow-towing

in Hong Kong and here.

4.

6

Washington telno 275 reports that it is difficult to predict whether, or when, the Bill will become law. But they warn of the damage that would be done by a public

done by statement. Hong Kong agrees (HK telno 346) as does Peking

8 (Peking telno 169) who doubt whether the Chinese

really expect to persuade us to speak out and further advise that such damage would outweigh any irritation we may cause

the Chinese by not speaking out. All are agreed that we

should avoid lobbying on the Hill but should quietly let the

Administration know of the points which concern us in the

Bill; the main bugbear is the reporting requirement, the

Administration are already aware of our concern and plan to try to persuade McConnell to amend the Bill.

5.

Washington recommends a sensible holding line for the Minister to use with Ambassador Ma. The checklist provided

by FED reflects this line. Peking's telegram (which arrived

after FED's briefing had been finalised) endorses the line

and suggests that Lord Caithness also ask what the Chinese

Embassy in Washington have been reporting on the issue and

whether the Embassy have sought to put their views directly

to Senator McConnell. I agree that these are points worth making though I am not sure that we shall get very far, with

them.

<delty

PF Ricketts

JM1ABN/2

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