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072021
MDADAN 8739
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FM PEKING
TO DESKBY 18090OZ FCO
TELNO 393
OF 180833Z MARCH 93
AND TO IMMEDIATE DTI
ADVANCE COPY
ise
14. :fepe (by had)/
Mr (5) Davies, ([x]
INFO DESKBY 1809OOZ HONG KONG, BTC HONG KONG, UKREP JLG HONG KONG INFO PRIORITY EC POSTS, WASHINGTON, TOKYO, CANBERRA, OTTAWA
UK/CHINA RELATIONS: HONG KONG AND BILATERAL TRADE
1.
THE MINISTER OF FOREIGN ECONOMIC RELATIONS AND TRADE, LI LANQING SAID AT A NATIONAL PEOPLE'S CONGRESS PRESS CONFERENCE THIS AFTERNOON (18 MARCH) THAT IF THE GOVERNOR STUCK TO HIS PRESENT POSITION, IT WOULD INEVITABLY AFFECT ECONOMIC AND TRADE RELATIONS BETWEEN BRITAIN AND THE PRC. NCNA IMMEDIATELY PUT THIS STATEMENT OUT AS A FLASH DESPATCH.
2. WE HAD NO ADVANCE WARNING OF THIS STATEMENT (EG AT A LUNCH TODAY BETWEEN COMMERCIAL DEPARTMENT AND MOFERT OFFICIALS).
3. OUR IMMEDIATE REACTION IN RESPONSE TO PRESS QUESTIONS HAS BEEN TO EXPRESS SURPRISE AND TO SAY THAT WE SHALL BE STUDYING THE STATEMENT CAREFULLY. WITHOUT DRAMATISING THE ISSUE WE SHALL REJECT ANY SUGGESTION THAT SUCH THREATS MIGHT AFFECT THE GOVERNMENT'S HONG KONG POLICY. WE SHALL REMIND ENQUIRERS THAT HMG CONTINUE TO SEEK CO-OPERATION WITH CHINA ACROSS THE BOARD.
COMMENT
THE THREAT IS GENERAL AND IN THE FUTURE TENSE, BUT IT CONFIRMS THAT THE CHINESE WILL BE LOOKING OUT TO IDENTIFY POSSIBLE RETALIATORY GESTURES.
4.
5. THE COMMISSION REPRESENTATIVE HERE HAS REMINDED US THAT, IF WE SUFFER ANY COMMERCIAL DISCRIMINATION, THE JOINT COMMISSION MEETING HERE IN LATE APRIL WILL BE A GOOD OPPORTUNITY TO PURSUE THE QUESTION.
MCLAREN
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