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FM PEKING
TO IMMEDIATE FCO
TELNO 1614
ADVANCE COPY
OF 170911Z DECEMBER 93
164075
MDADAN 1485
My Whitney
HUTS 180/2 la propos
The same thoughts
19 DEC 1993
✔ X
INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG, BTC HONG KONG
INFO IMMEDIATE UKREP BRUSSELS
INFO ROUTINE WASHINGTON, BONN, PARIS
Ÿ work discussing wit DiT
HONG KONG CONSTITUTIONAL DEVELOPMENT: CHINESE THREATS TO BRITISH,
COMMERCIAL INTERESTS
SUMMARY
1.
A proposed public line in response to Chinese threats. Might European Commission approach the Chinese for clarification ?
DETAIL
2.
The MFA spokesman's statement yesterday (reported in our telno 1609, not to all) that our "sabotaging" of the Hong Kong talks will "surely affect Sino-British relations, including economic and trade relations" is the most direct threat yet of Chinese retaliation against our commercial interests. As we are reporting separately it has been given prominence in the English-language China Daily, but not in Chinese-language official media.
3.
It would be open to us now to seek "clarification" from the MFA here or, perhaps better in view of Ambassador Ma Yuzhen's recent public statements, from the Chinese Embassy in London. However, as seen from here, such an approach would be likely only to gratify the Chinese authorities; it might even encourage them to imagine that economic pressure may be effective against us (as it seems to have been, at least to some extent, against the French). From this point of view we might do best to turn the other cheek.
.
Publicly it will no doubt be necessary to say something disdainful: we might note that the Chinese have not told us of any intention to apply trade sanctions; and point out that any such sanctions would be surprising given Chinese aspirations to reaccede to GATT and their usual line (eg re US MFN) that politics should not interfere with trade; given the large Chinese trade surplus with the UK; and given that there is no prospect of HMG's being
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