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THAT IF HE WANTED TO SEE HUMAN RIGHTS ABUSES IN NORTHERN IRELAND WE WOULD ARRANGE FOR HIM TO VISIT A HOSPITAL WARD IN THE AFTERMATH OF AN IRA BOMB EXPLOSION. ON THIS ISSUE FOLEY CONTINUES TO PLAY A CRUCIAL AND UNFAILINGLY HELPFUL ROLE.
CHINA/MFN
11. HERE TOO THE ADMINISTRATION HAS NOT REACHED CONCLUSIONS EXCEPT THAT MEN WILL NOT BE EXTENDED UNCONDITIONALLY. THEY ARE AWARE OF OUR CONCERNS ABOUT HONG KONG AND HAVE PROMISED TO TAKE DUE ACCOUNT OF THESE. NEITHER WE NOR THE ADMINISTRATION WANT THEIR ACTIONS TO BE LINKED DIRECTLY TO THE CHINESE PERFORMANCE OVER HONG KONG. BUT IN REALITY CHINESE RELATIONS WITH THE WEST POST-1997 WILL DEPEND CRITICALLY ON WHAT HAPPENS IN RELATION TO HONG KONG. THE ADMINISTRATION ARE CONSIDERING WHETHER TO EXTEND MFN FOR ONE YEAR WITH CONDITIONS WHICH WOULD NEED TO BE MET BY THE MIDDLE OF NEXT YEAR (THE PREFERRED STATE DEPARTMENT OPTION). CLINTON IS CONCERNED NOT ONLY ABOUT HUMAN RIGHTS BUT THE FLAGRANT FLOUTING BY THE CHINESE OF RESTRICTIONS ON THE EXPORT OF MISSILES AND MISSILE TECHNOLOGY TO PAKISTAN AND IRAN. THERE ALSO IS A PROTECTIONIST DIMENSION: THE CHINESE SURPLUS ON TRADE WITH THE
U.S. 18 BILLION DOLLARS IS NOW SECOND ONLY TO THAT OF JAPAN. WE HAVE TOLD THE ADMINISTRATION THAT SETTING BACK THE COURSE OF ECONOMIC REFORM IN CHINA IS THE LAST WAY TO ENCOURAGE POLITICAL CHANGE.
NUCLEAR TESTING
12. THE ADMINISTRATION HAS MADE CLEAR ITS INTENTION TO HONOUR THE TERMS OF THE CONGRESSIONAL LEGISLATION (UNDER WHICH WE WOULD BE ABLE TO CARRY OUT A FURTHER THREE TESTS OVER THE NEXT THREE YEARS) AND WOULD TERMINATE TESTING THEREAFTER UNLESS OTHERS CONTINUED TO TEST. CLINTON IS COMMITTED TO MOVEMENT TOWARDS A CTB. U.S. DEFENCE SCIENTISTS, LIKE OUR OWN, CONSIDER THAT FURTHER VERY LIMITED TESTING MAY BE NECESSARY TO ENSURE THE SAFETY OF THE STOCKPILE. BUT THE POLITICAL IMPETUS HERE IS TOWARDS A CTB IF OTHERS CAN BE BROUGHT TO AGREE. WE SHOULD STRESS THE IMPORTANCE OF CONTINUING VERY CLOSE CONSULTATION.
GATT AND OTHER TRADE ISSUES
13. THESE SHOULD BE DEALT WITH MAINLY IN THE TALKS KANTOR WILL BE HAVING IN LONDON ON 30/31 MARCH. BUT IT WILL BE WORTH EMPHASISING TO CHRISTOPHER AND LAKE THE IMPORTANCE WE ATTACH TO RENEWING THE IMPETUS IN THE GATT ROUND AND AVOIDING RETALIATION AND
COUNTER-RETALIATION ON SPECIFIC TRADE ISSUES MEANWHILE. UNDER PRESSURE FROM US, THE ADMINISTRATION HAVE MODIFIED THEIR POSITION
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