CONFIDENTIAL
HKB 091/1
RECEIVED IN FEGISTRY
17 MAR 1993
DESK OFFICER INDEX
REGISTRY
PA
Action Taken
PA MFN file
but pix can like x below first. This mis
060232
MDTTAN 8458
Mr Hyd
Mr
40
CONFIDENTIAL
FM HONG KONG
TO TELELETTER FCO
TELELETTER NFR
OF 150141Z MARCH 93
AND TO TELELETTER WASHINGTON, PEKING
Ricketts Mis Barnes Juan
ст
1775
ho13.
M. Whitney 17/3.
Новеваний
Mids Souch Good Points.
1713 pa.
→
10 Jis 13
FROM: CHERRY LING, PRINCIPAL ASSISTANT SECRETARY FOR TRADE AND INDUSTRY, HONG KONG
FOR: J C MORRIS ESQ., HONG KONG DEPARTMENT, FCO COPIED TO: S D PATTISON ESQ., WASHINGTON
W EHRMAN ESQ., POLITICAL ADVISER, HONG KONG A PAUL ESQ., UKREP JLG HONG KONG
M COX ESQ., PEKING
US/CHINA: MFN RENEWAL
1. I REFER TO YOUR TELELETTER OF 9 MARCH.
+2. PATTISON'S REPLY OF 11 MARCH TO YOU IS MOST HELPFUL AND I
AGREE WITH HIS ASSESSMENT.
3. FOR SOME TIME NOW CHINESE OFFICIALS HAVE BEEN MAKING THE ARGUMENT THAT A CONSIDERABLE PORTION OF CHINA'S TRADE SURPLUS IS ATTRIBUTABLE TO INVESTMENTS FROM HONG KONG AND TAIWAN. THEY HAVE MADE THIS POINT TO US AND WE BELIEVE THAT THEY DID SO TO US NEGOTIATORS DURING THE SECTION 301 MARKET ACCESS TALKS LAST YEAR. WE HAVE TOLD THEM THAT WE DO NOT AGREE WITH THIS ARGUMENT. WE
BELIEVE THE AMERICANS ALSO REJECTED IT IN THE CONTEXT OF THEIR
MARKET ACCESS NEGOTIATIONS WITH THE CHINESE.
4. WE HAVE ALSO NOTICED A TENDENCY AMONG OUR NATURAL ALLIES ON THE MFN ISSUE TO BE ATTRACTED BY THE 'GREATER CHINA' ARGUMENT. THE US-CHINA BUSINESS COUNCIL INCLUDED IT IN A PAPER ON CHINA POLICY WHICH THEY PRESENTED TO THE THEN PRESIDENT-ELECT CLINTON IN DECEMBER. WE HAVE DRAWN ATTENTION TO THE DRAWBACKS AND WILL CONTINUE TO DO SO. BUT I SHARE YOUR CONCERN THAT IT MAY FALL INTO THE HANDS OF PROTECTIONISTS PREPARED TO USE IT TO HONG KONG'S
DISADVANTAGE.
5. WE HAVE CONSISTENTLY ARGUED THAT COUNTRY OF ORIGIN IS AN INTERNATIONALLY ACCEPTED CRITERION FOR THE COMPILATION OF TRADE STATISTICS. FOR EXAMPLE, US EXPORTS ARISING FROM FOREIGN
1
PAGE
CONFIDENTIAL
Page 225Page 226