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RESTRICTED
FM WASHINGTON
TO
TELNO 550
IMMEDIATE FCO
OF 120042Z MARCH 93
RESTRIC
HKB 091/1
RECEIVED IN REGISTRY
17 MAR 1993
DESKT
REGISTRY
INDEX
PA
Action Taken
39
054326
MDHIAN 3076
Can MFN file.
پیام
INFO IMMEDIATE HONG KONG, PEKING, UKREP JLG HONG KONG, ACTOR
linds
U.S./CHINA: MFN
SUMMARY
1.
CHRISTOPHER SIGNALS ADMINISTRATION'S WILLINGNESS TO CONSIDER
CONDITIONAL MFN RENEWAL.
DETAIL
2. TESTIFYING BEFORE THE HOUSE APPROPRIATIONS SUB-COMMITTEE ON 10 MARCH, SECRETARY CHRISTOPHER WAS ASKED ABOUT POLICY ON CHINA MEN. HE REPLIED THAT CHINA'S BEHAVIOUR WAS UNSATISFACTORY IN A NUMBER OF AREAS. THEIR HUMAN RIGHTS RECORD WAS POOR, DESPITE THE RECENT RELEASE OF A FEW DISSIDENTS. THEIR RELATIONSHIP WITH TIBET WAS OPEN TO CONSIDERABLE CRITICISM. THEY HAD A DOLLARS 19 BILLION TRADE SURPLUS WITH THE U.S., DUE IN PART TO ABUSIVE TRADE PRACTICES. HE WAS CONCERNED ABOUT THEIR ARMS PROLIFERATION ACTIVITIES. ON THE OTHER HAND, CHRISTOPHER SAID THE CHINESE WERE MAKING PROGRESS IN DEVELOPING A MARKET ECONOMY. THEY WERE ALSO A GREAT AND POWERFUL COUNTRY.
3. CHRISTOPHER ADDED THAT HE DID NOT WANT TO ISOLATE CHINA. HE HOPED THAT THE U.S. COULD GO FORWARD WITH MFN THIS YEAR, CONDITIONED ON THE CHINESE MAKING QUOTE VERY SUBSTANTIAL PROGRESS UNQUOTE. HE WANTED TO EXPLORE THIS WITH CONGRESS. MEN WAS AN IMPORTANT TOOL. HE WANTED TO SEE WHAT STEPS THE CHINESE WOULD TAKE, NOW THAT CONGRESS AND THE ADMINISTRATION WERE WORKING TOGETHER ON THIS PROBLEM.
4. STATE (PERITO, DIRECTOR, CHINA OFFICE) TOLD US THAT CHRISTOPHER'S REMARKS WERE INTENDED TO SIGNAL THE ADMINISTRATION'S WISH TO WORK WITH CONGRESS TO DEVISE A STRATEGY ON MFN WHICH WOULD TAKE ACCOUNT OF THE ADMINISTRATION'S AND THE HILL'S CONCERNS, WITHOUT ISOLATING CHINA. PERITO CONFIRMED THAT THE ADMINISTRATION'S CURRENT THINKING WAS THAT THE PRESIDENT WOULD RENEW MFN IN JUNE 1993, BUT WOULD AT THE SAME TIME SET BROAD CONDITIONS FOR RENEWAL
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