CONFIDENTIAL
051213
MDTTAN 8251
UNFORTUNATELY, THE LATEST ROUND OF TALKS DID NOT GO WELL, AND IT IS NOT IMPOSSIBLE THAT THE AMERICANS WILL RECONSIDER IMPOSING TARGETED SANCTIONS ON CHINA. IF SO, WE WILL NEED TO ENSURE THAT HONG KONG'S POSITION IS TAKEN INTO ACCOUNT (YOU MAY REMEMBER THAT WE DID THIS LAST OCTOBER WHEN THE AMERICANS THREATENED SANCTIONS IN THE RUN-UP TO THE MARKET ACCESS AGREEMENT.)
5. IN SHORT, WE CANNOT BE ENTIRELY SURE OF COMPLETELY PROTECTING HONG KONG'S ROLE AS AN ENTREPOT FOR CHINESE TRADE, BUT WE MIGHT BE ABLE TO MINIMISE THE DAMAGE DONE BY TAMPERING WITH MEN.
SIGNED S D PATTISON
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