Ale

Foreign and Commonwealth Office

London SW1A 2AH

MAN'S DAY! Мав

19

Your Ref:

4 February 1993

A118-42.UK

REC

Y

10 FEB 1990

#

N Kearney Esq

General Secretary

International Textile, Garment

& Leather Workers' Federation Rue Joseph Stevens

8-1000 Brussels

Belgium

Dear Mr Kearney

I have been asked to thank you for your letter of 14 January to the Prime Minister.

Under the Sino-British Joint Declaration of 1984 Britain is responsible for the administration of Hong Kong until 30 June 1997 with the object of preserving its economic prosperity and social stability. As Hong Kong's economy is closely linked to that of China, measures which would reduce China's trade with the world would also damage Hong Kong. If the US ended China's Most Favoured Nation (MFN) status, that would severely affect Hong Kong's economy, possibly causing a 50% reduction in GDP growth. This would have a direct effect on Hong Kong's workforce. Estimates suggest that it would lead to a loss of up to 60,000 jobs. That is why we consider that it is in the interests of the people of Hong Kong for China's MFN status to be renewed. We have ensured that the US Administration is fully aware of the damage that would be done to Hong Kong if China's MFN status is not renewed.

We continue to be deeply concerned about reports of human rights abuses throughout China, including in Tibet. We deplore such abuses wherever they occur and have made our concerns clear to the Chinese authorities both in public and private on many occasions. But we do not believe that these issues should be pursued by restricting free trade and thereby damaging Hong Kong.

PF Ricketts

Sincerely,

HONG KONG DEPARTMENT

Zeker Richeltz

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