CONFIDENTIAL

[if raised by Pressl

Renewal of China's MFN status is extremely important to

Hong Kong. A matter for US Administration. They are well aware of our views on the subject.

US SANCTIONS ON CHINA

[if raised by Administration onlyl

-

Fully support US Government's objective of preventing illegal transfer of missile technology. Hope that in taking

any further action (eg upgrading to category 1 sanctions) the Administration will bear in mind our concern that any impact

on Hong Kong should be as small as possible.

AIRPORT PROJECT

[if raised]

„SomeTM

Airport project proceeding on schedule although we have yet to agree with the Chinese the overall financing arrangements for the railway and the Provisional Airport Authority. indication that the Chinese are now prepared to delink progress on the airport from wider political issues.

infatuately this has heen caught up in the mides pritical debate,

wying the Chiere to deal with the cupart on it wants. Some ajrament can be reached within the next fons menthes,

but m

rijns that an

sos.wash.21.NAT.JEB

JEB

CONFIDENTIAL

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