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that Clinton might renew MFN for twelve months, while laying down future conditions on human rights and the release of prisoners. She agreed that any conditions ought to be as lightly drawn as possible: otherwise they would do more harm than good with the Chinese. I said that whatever was done, we would need Hong Kong's interests to be protected and that covered re-exports as well as exports.

3.

On the Governor's proposals for democracy in Hong Kong, Miss Kamsky said that she supported these and, as we knew, so did Clinton. She felt strongly, however, that it would be a mistake for the U.S. to link Chinese acceptance of these proposals to the renewal of MFN. I said that we were agreed on this. Nevertheless, the Chinese leadership did need to realise that their whole future relationship with the West would be affected by their policy towards Hong Kong before and after the transfer of power in 1997.

4. Miss Kamsky said that Winston Lord is quite a likely candidate to become Assistant Secretary for Far Eastern Affairs if he wishes to take the position. We are, of course, in close touch with him. But there are other candidates.

5.

Miss Kamsky will be visiting Hong Kong between 6 and 8 February. I have suggested that, when she does, she should get in touch with Tony Galsworthy. When she is next in London, she should get in touch with Christopher Hum. We have given her the details.

6.

This was a very friendly conversation with Miss Kamsky and she certainly is trying to be helpful. As sometimes happens with Ronnie Grierson, he was rather inflating her importance. But she is well worth keeping in touch with and we will do so here. I am sending a note about her to Tony Galsworthy. I have told Ronnie Grierson about my meeting with her

Yours

ever

Mobiri

Robin Renwick

cc: JS Wall Esq CMG LVO; No 10 Downing St

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