RESTRICTED
MNB Ou
130745
MDTTAN 5793
RESTRICTED
FM WASHINGTON
TO TELELETTER FCO
TELELETTER NFR
OF 022352Z FEBUARY 93
AND TO TELELETTER HONG KONG, PEKING
FROM: S D PATTISON, WASHINGTON
TO:
CC:
TRY
10 FEB 1993
P RICKETTS ESQ., HONG KONG DEPARTMENT, FCO HONG KONG, PEKING
CHINA/MFN
Mr Whitne
Do you know anything about 'x'? We'd fetter ash M
1.
I RECENTLY CALLED ON ED KING (SENATOR MITCHELL'S SENIOR STAFFER ON CHINA/MEN). (MITCHELL, YOU WILL RECALL, HAS, ALONG WITH CONGRESSWOMAN PELOSI, BEEN ONE OF THE LEADING CAMPAIGNERS FOR MEN CONDITIONALITY.)
2.
KING SAID HE WAS WELL AWARE OF THE HONG KONG ANGLE. NO-ONE WANTED TO RUIN HONG KONG. PREVIOUS BILLS HAD BEEN DRAFTED TO
MINIMISE THE DAMAGE TO HONG KONG. BUT THE HUMAN RIGHTS LOBBY WAS ACTIVE, AND CONGRESS WOULD HAVE TO DO SOMETHING.
3. HE THEREFORE THOUGHT RENEWAL IN 1993 WOULD GO UNCHALLENGED. BUT LEGISLATION WOULD BE INTRODUCED TO ENSURE THAT MFN COULD ONLY
BE RENEWED IN 1994 IF THE PRESIDENT CERTIFIED SIGNIFICANT PROGRESS IN HUMAN RIGHTS, TRADE RELATIONS AND NON-PROLIFERATION. OTHERWISE, SANCTIONS WOULD BE TARGETTED AT STATE-OWNED ENTERPRISES. THE KEY WOULD THEN BE HOW THE CHINESE RESPONDED. THEY WOULD NOT NEED TO GIVE THE PRESIDENT VERY MUCH FOR HIM TO CERTIFY THAT SIGNIFICANT PROGRESS HAD BEEN MADE.
4.
I ARGUED THAT ANY ATTEMPT TO TAMPER WITH MFN WOULD DAMAGE BUSINESS CONFIDENCE IN HONG KONG, AND HOPED THAT SOME OTHER WAY COULD BE FOUND TO ADDRESS CONCERNS ABOUT CHINA. KING WAS SCEPTICAL. WHAT LITTLE PROGRESS HAD BEEN MADE WITH CHINA HAD ONLY
BEEN POSSIBLE BECAUSE OF THE THREAT OF WITHDRAWING MFN. HE AGREED, THOUGH, THAT LEGISLATION MIGHT BE AVOIDED IF CLINTON ANNOUNCED HIS OWN CONDITIONS. CLINTON MIGHT BE ABLE TO GET MORE FROM THE CHINESE BY ARGUING THAT IF THEY DID NOT DO BUSINESS WITH HIM, THE CONGRESS WOULD TAKE A TOUGHER STANCE.
5. KING ADDED THAT A COMPLICATING FACTOR FOR HONG KONG WAS THE
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