9.

CHINA'S MFN STATUS IN THE US: IMPACT ON HK OF

NON-RENEWAL

Know how important this is for Hong Kong.

Understand the

US Administration is not in favour of withdrawing China's MFN status, and President Bush is likely to veto any attempt by Congress to do so. We shall continue to lobby both the Administration and Congress on behalf of Hong Kong.

IMPACT OF CONDITIONALITY BILL (WHICH TARGETS PRODUCTS OF

STATE-OWNED ENTERPRISES)

- Conditional renewal would be tantamount to withdrawal of

MFN status. Realise it would have serious knock-on effects

for Hong Kong.

KS1ADZ/14

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