CONFIDENTIAL

FM WASHINGTON

TO IMMEDIATE FCO

TELNO 615

OF 190034Z MARCH 93

CONFIDENTIAL

091/1

(46.

074442

MDHIAN 4052

pa

an MFN file pls.

HKR

09111

INFO IMMEDIATE PEKING, HONG KONG, ACTOR RECEIVED IN AGISTRY

HONG KONG PERSONAL FOR GOVERNOR

23 MAN 1903

DESK OFFICER

INDEX

PA

REGISTRY Action Taken

FCO COMCEN PLEASE PASS TO HOMS FOR SIRP RENWICK

U.S./CHINA: MFN

SUMMARY

1

.

U.S.

DEMARCHE IN PEKING EMPHASISES NEED FOR IMPROVEMENT IN CHINESE BEHAVIOUR ON HUMAN RIGHTS/TRADE/ARMS PROLIFERATION IN RUN UP TO THIS YEAR'S MFN DEBATE. CHINESE RESPONSE WILL BE A KEY FACTOR IN ADMINISTRATION'S DECISION ABOUT HOW TO HANDLE MFN.

DETAIL

2. ON 18 MARCH WE DISCUSSED PROSPECTS FOR THE MFN DEBATE WITH WIEDEMANN, THE NEWLY-APPOINTED SPECIAL ASSISTANT TO THE PRESIDENT FOR ASIA, NSC.

3.

Wing

WIEDEMANN SAID THE PRESIDENT HAD NOT YET FOCUSSED IN DETAIL ON THE MFN ISSUES. BUT HE WAS VERY CONCERNED ABOUT CHINA'S POOR HUMAN RIGHTS PERFORMANCE, THE GROWING U.S./CHINA TRADE DEFICIT - WHICH COST AMERICAN JOBS · AND CHINA'S ARMS PROLIFERATION ACTIVITIES. THE PRESIDENT UNDERSTOOD THE IMPORTANCE OF MFN, AND REALISED THAT, AS A WEAPON, IT COULD ONLY BE USED SPARINGLY. HE WAS ANXIOUS TO WORK WITH CONGRESS IN THE HOPE OF AVOIDING LEGISLATION. BUT IF SUCH LEGISLATION WERE PUT FORWARD IT WOULD BE VERY DIFFICULT FOR

HIM TO VETO.

4.

WIEDEMANN SAID THAT THE AMERICANS HAD MADE A DEMARCHE TO THE CHINESE AT THE BEGINNING OF THE WEEK EMPHASISING THEIR CONCERNS ABOUT CHINESE BEHAVIOUR IN SPECIFIC AREAS (TRADE, HUMAN RIGHTS, PROLIFERATION). THEY MADE CLEAR THAT CHINA'S PERFORMANCE BETWEEN NOW AND MAY WOULD BE AN IMPORTANT FACTOR IN INFLUENCING THE

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CONFIDENTIAL

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