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SFIDENTIAL
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70.03
AMERICAN INTEREST AT STAKE. US AND HONG KONG HAD BOTH HELPED TO
PROMOTE ECONOMIC LIBERALIZATION IN CHINA. HONG KONG COULD HELP
CHINA IN A SIMILAR WAY TO THE ROLE NEW YORK HAD PLAYED IN THE US.
IT FOLLOWED THAT MFN RENEWAL AND TRADE BETWEEN CHINA AND THE US
WERE ENORMOUSLY IMPORTANT ΤΟ HONG KONG.
HE WAS AWARE OF US
WORRIES ON CHINA'S HUMAN RIGHTS AND ARMS SALES ISSUES BUT HE WOULD
ARGUE IN PUBLIC THAT THERE WERE OTHER MECHANISMS FOR MEETING THESE
US CONCERNS.
4.
THE GOVERNOR SAID THAT APART FROM THIS PUBLIC PITCH HE WOULD
HAVE TO REALISE THAT THE PRESIDENT WAS LOOKING FOR A DIFFERENT
POLICY.
HE RECOGNISED THAT THE PRESIDENT WOULD BE UNLIKELY TO
SAY ANYTHING IN THE NEXT FEW WEEKS THAT WOULD REDUCE PRESSURE ON
CHINA. HOWEVER HE HOPED PRIVATELY THAT IF THE US CHANGED TACK ITS
NEW POLICY WOUD TAKE ACCOUNT OF THE FOLLOWING FACTORS:
WILL
ILL LED,
(A) IT SHOULD BE EXECUTIVE-LED RATHER THAN CAPITOL
(B) IT SHOULD PROVIDE A PERIOD OF TIME, SAY A YEAR, TO ENABLE
CHINA TO FACE UP TO SUCH CONDITIONS OR EXPECTATIONS,
(C) ANY CONDITIONS, OR EXPECTATIONS, SHOULD BE ACHIEVABLE BY CHINA
AND BE COUCHED IN GENERAL RATHER THAN SPECIFIC TERMS,
(D)
ANY CONDITIONS SHOULD BE HONG KONG FRIENDLY AND NOT REFER TO
HONG KONG'S ARGUMENTS WITH CHINA ON CONSTITUTIONAL DEVELOPMENT
SO
AS NOT TO FURTHER STRENGTHEN THE CHINESE WORRY OF AN
INTERNATIONAL CONSPIRACY AGAINST HER.
CONFIDENTIAL
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