CONFIDENTIAL
HKR 091/1
RECEIVED IN REGISTRY
T14213
MDHIAN 4922
CONFIDENTIAL
FM WASHINGTON
DESK OFFICER
TO DESKBY 26090OZ FCO
INDEX
PA
REGISTRY Action Taken
TELNO 687
OF 252305Z MARCH 93
INFO IMMEDIATE PEKING, HONG KONG, ACTOR
FROM PRIVATE SECRETARY
FOREIGN SECRETARY'S VISIT TO WASHINGTON, 25 MARCH:
HONG KONG
SUMMARY
ра
MEN
26/3
jw
1. CHRISTOPHER AGREES THAT UK SHOULD BE CONSULTED BEFORE A DECISION IS TAKEN ON CHINA/MFN. INDICATES HIS OWN PREFERENCE FOR RENEWAL OF MFN STATUS BY EXECUTIVE ORDER RATHER THAN LEGISLATION.
DETAIL
2. THE FOREIGN SECRETARY BRIEFED WARREN CHRISTOPHER TODAY ON THE BREAKDOWN OF TALKS ABOUT TALKS WITH THE CHINESE. WE HAD EARLIER BELIEVED THAT WE HAD AN AGREEMENT BUT THE CHINESE BACKED AWAY. THERE WAS A FIERCE DEBATE RAGING IN PEKING. THE GOVERNOR OF HONG KONG COULD NOT HOLD UP LEGISLATION INDEFINATELY AND HE WOULD HAVE TO DECIDE HOW BEST TO PROCEED. WE HAD TOLD THE CHINESE THAT WE WOULD PUT TO LEGCO ANY AGREEMENT REACHED BETWEEN THE UK AND CHINA. THEY HAD TO RECOGNISE THAT, NOT LEAST THROUGH THEIR OWN ACTIONS IN TIANANMIN SQUARE, HONG KONG WAS NOW A POLITICAL CITY AS WELL AS A BUSINESS CENTRE.
3.
THE SITUATION IN HONG KONG WAS RELEVANT TO U.S. CONSIDERATION OF RENEWAL OF CHINA'S MFN STATUS. 70 PCT OF CHINA'S EXPORTS WENT THROUGH HONG KONG. THE GOVERNOR WOULD BE ASKING DURING HIS VISIT TO WASHINGTON IN MAY FOR UNCONDITIONAL RENEWAL. WE REALISED THIS MAY BE DIFFICULT. THE FOREIGN SECRETARY MADE A PRIVATE REQUEST: HE ASKED THAT WHEN THE QUESTION OF CONDITIONALITY CAME UP FOR DECISION COULD WE PLEASE BE CONSULTED.
4.
CHRISTOPHER SAID HE UNDERSTOOD AND WANTED TO HELP. BUT IT WAS VERY UNLIKELY THAT CHINA'S MFN STATUS WOULD BE RENEWABLE UNCONDITIONALLY UNLESS THINGS MOVED A VERY LONG WAY. CONCERNS WERE THREE FOLD:
THE
PAGE CONFIDENTIAL
1
H&B
RC
26 MAR 1993
Page 195Page 196