GOVERMENT HOUSE HONG KONG.

HED 12 MAY 93 03:43

PG.03

1

b.

CONCIDENTAL

Mr. Solarz wondered whether the connection had

bean noted betwee

1 the t

of the non-proliferation ina had undertaken to act

The

South Korea,

as middle-man in ly to bring North Korea into lin. chancex were that China would not succeed. the US and Japan would then probably try to introduce

the UN. If China had sanctions against North Korea at not only failed to move Korea into line but also then took action in the Security Council to block sanctions ogainet North Korea, this would play very badly in

much tougher Congress and would be likely to result in » US attitude towardo China on MFN. Conversely, if China did persuade North Korea to take a more construccive attitude or China acquiesced in a Security Council resolution advocating sanctione against North Korma, this could well encourage both the white House and Congress to

Either way, it take a more forthcoming approach on MFN. was important that the US made clear to the Chinesa vozy quickly what the implications of their actions on the Korean issue could be. They should also be given a broad steer about the kind of conditions they could expect to be attached to MFN.

5.

The Governor agreed. The Chinese officials dealing with trade and economic issues (Qian Qichen, Zhu kongji and T. Langing) wero generally pretty sophisticated and intelligent and should be told what would be expected of them.

7.

Mr. Solarz asked the Governor what scope there was for compromise in the constitutional talks with China. The Governor said there were three main issues; the Election Committee, the functional constituencies and the through-train. He explained the current debate on oach. Mr. Solarz asked whether the Chinese had drawn the conclusion the the way they performed over Hong Kong would have a bearing on their application to hold the Olympics in 2000. The Governor said he thought they were aware of this. His own assessment was that many of these acnior Chinese involved in the Hong Kong issue in Peklag did not want it. Lo get out of proportion and have negative impact on the other foreign policy objectives to

the Olympics, which they attached importance such as membership and MFN.

*

GATT

8.

Mr. Solarz wondered why Chàna had decided to make such a disproportionate fuss about the Governor'a

The Governor said that proposals in the first place. they had reacted strongly shortly after his return from his October vixil to Feking, probably as a result o? brief but negative comments from Deng.

CONFIDENTIAL

They had then had

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