CONFIDENTIAL
055435 MDHIAN 5675
HAVE TRANSITED HONG KONG IS UNLIKELY TO BE PERCEIVED BY THE US CONGRESS AS AN EFFECTIVE PENALTY, FOR THE SIMPLE REASON THAT IT WOULD EXEMPT BETWEEN SEVENTY TO A HUNDRED PERCENT OF CHINA'S EXPORTS TO THE US. IN ADDITION, THERE WILL BE THE USUAL PROBLEMS OF MISDECLARATION AND/OR FRAUDULENT APPLICATIONS ASSOCIATED WITH ANY CERTIFICATION REGIME.
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4. AS WE ALL KNOW, WASHINGTON LEAKS LIKE A SIEVE. ANY INDICATION THAT WE ARE ALREADY CONSIDER DAMAGE LIMITATION WOULD SEND
ENTIRELY THE WRONG MESSAGE TO THE US ADMINISTRATION AND CONGRESS, OUR US ALLIES AND THE CHINESE. THEREFORE, WE BELIEVE THAT, WHILE WE SHOULD CONTINUE TO THINK OF WAYS OF ACHIEVING (B), IT IS IMPORTANT THAT WE SHOULD NOT START PUTTING DAMAGE LIMITATION PROPOSALS TO THE US ADMINISTRATION AT THIS EARLY STAGE.
PATTEN
YYYY
MAIN
.HK POLICY
64
DISTRIBUTION
65
NTCD
HKD
PUSD
FED
LEGAL ADVISERS//MS BARRETT
./MS BROOKS AND MR GILES NEWS D
PLANNERS
RAD
PS
PS/MR GOODLAD
SIR J COLES MR HUM
ADDITIONAL
1
HO//B4DIV MR C KELLEY
NNNN
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