24-
рир
pas 19/3
Confidential
SECRETARY OF STATE'S VISIT TO WASHINGTON, 24-25 MARCH
POINTS TO MAKE
HONG KONG
HKD 021/3
RECE
22 MAR 1993
FICE
INDE
Grateful that President can find time to see the Governor of
Hong Kong when he visits the US in a few weeks time.
-
Grateful for your support over Hong Kong. More effective if this is conveyed privately to the Chinese rather than in public statements.
China MFN/Hong Kong
- HMG support unconditional renewal of MFN for China. This is essential to Hong Kong's economy as 70% of China's exports to US pass through Hong Kong. If not renewed, estimate that Hong Kong's GDP growth would be halved and substantial job losses.
- Other options, such as partial renewal targeting the Chinese state sector or conditional renewal could also damage Hong Kong. Would bring uncertainty to the markets and lead to an erosion of confidence.
- In our view cancellation or conditional renewal of MFN is not
the best means of promoting human rights in China. Hope the US will explore other options, eg a bilateral human rights commission. Also aware that China would like US approval of World Bank lending, and US to lift its 1989 ban on US Trade Promotion Programme.
wash.visit.NAT.JRB
Confidential