RESTRICTED
8
060473
MDHIAN 5842
RESTRICTED
FM WASHINGTON
TO IMMEDIATE FCO
TELNO 98
OF 160035Z JANUARY 93
TRY
Ї
1. JAM 1593
TRY
INL
Taken
TOP COPY DIST?
INFO PRIORITY HONG KONG, UKREP JLG HONG KONG, PEKING, ACTOR
Min file
U.S./CHINA
SUMMARY
1.
STATE BELIEVE CHINA WISHES TO CONTAIN THE DAMAGE TO U.S./CHINA RELATIONS FOLLOWING THE F16 SALE. STATE WILL URGE THE NEW ADMINISTRATION NOT TO JEOPARDISE U.S./CHINA TRADE RELATIONS BY WITHDRAWING MFN. AMERICANS HOPE WE WILL KEEP THEM CLOSELY INFORMED OF DEVELOPMENTS IN HONG KONG.
DETAIL
2. ON 15 JANUARY HUM CAUS VISITING) CALLED ON CLARK (ASSISTANT SECRETARY, STATE) TO DISCUSS U.S./CHINA RELATIONS.
F16 SALE
3.
CLARK SAID THAT, DESPITE THEIR RHETORIC OVER THE F16 SALE, THE CHINESE RESPONSE HAD BEEN RELATIVELY RESTRAINED. THE AMERICANS HAD SWEETENED THE PILL BY APPROVING LICENCES FOR CHINESE SATELLITE LAUNCHES, CLEARING UP OUTSTANDING MILITARY SALES CASES (OUR TELNO 2832), AND INVITING THE CHINESE SCIENCE MINISTER TO VISIT WASHINGTON. FOR THEIR PART, THE CHINESE HAD SIGNALLED THAT THEY WANTED TO CONTINUE THEIR TRADE RELATIONSHIP WITH THE U.S.: THEY HAD SIGNED A LARGE GRAIN DEAL, AND A MAJOR CONTRACT WITH BOEING.
MFN
4. HUM STRESSED THE IMPORTANCE FOR HONG KONG OF UNCONDITIONAL RENEWAL OF MFN. CLARK TOOK THE POINT. HE SAID THE CHINESE VALUED THEIR TRADING RELATIONSHIP WITH THE U.S., AND STATE WOULD BE ADVISING THE NEW ADMINISTRATION NOT TO JEOPARDISE IT BY WITHDRAWING MFN. HE DID NOT THINK CLINTON WOULD WANT TO RUSH THIS ISSUE. BUT THERE WERE MANY ON THE HILL WHO FELT STRONGLY ABOUT CHINA (PARTICULARLY OVER TIANANMEN, TIBET, AND HONG KONG). CLINTON WOULD BE UNABLE TO VETO LEGISLATION SETTING CONDITIONS FOR MFN, AND, EVEN