UNCLASSIFIED

5732

MDLIAN 2922

AND MFN WAS THE WRONG TOOL FOR ACHIEVING OTHER POLICY OBJECTIVES, (THE HONG KONG GOVERNMENT CARED ABOUT HUMAN RIGHTS BUT BELIEVED MFN SHOULD NOT BE USED AS LEVERAGE ON THAT ISSUE), CONDITIONALITY COULD BE TAKEN AS ADVANCE NOTICE BY INVESTORS TO PHASE OUT THEIR INVESTMENTS IN CHINA, THUS DAMAGING HONG KONG'S ECONOMY EVEN BEFORE MFN HAD BEEN REVOKED, ALLYING OURSELVES WITH THE US BUSINESS COMMUNITY WHICH STILL SUPPORTED UNCONDITIONAL MFN ENHANCED THE EFFECTIVENESS OF OUR LOBBYING AND STRONG SUPPORT FOR MFN WAS REQUIRED TO COUNTER-BALANCE ARGUMENTS FOR MEN REVOCATION

OR STRINGENT CONDITIONS.

5. THE SECRETARY SAID THAT THE GOVERNOR'S VISIT WAS EXTREMELY WELL-TIMED AND ENSURED THAT THE HONG KONG MESSAGE WAS CONVEYED TO THE HIGHEST LEVELS IN THE US ADMINISTRATION AND CONGRESS. HE REJECTED CHEONG'S COMMENT ON THE GOVERNOR AND SAID THAT THE GOVERNOR HAD DONE NOTHING TO RIDICULE CHINA AND HAD SPENT MUCH OF HIS TIME IN THE US ARGUING FORCEFULLY FOR THE UNCONDITIONAL

RENEWAL OF MEN AND AGAINST LINKING THE CONSTITUTIONAL DEVELOPMENT OF HONG KONG WITH MFN.

PATTEN

YYYY

ΜΑΙΝ

63

HKD

PUSD

FED

NEWS D

PLANNERS

RAD

PS

ADDITIONAL

7

CAOFF//SIR R BRAITHWAITE CAOFF//MISS NEVILLE-JONES

NNNN

DISTRIBUTION

70

PS/MR GOODLAD SIR J COLES

MR HUM

LEGAL ADVISERS//MS BARRETT

LEGAL ADVISERS//MISS BROOKS

LEGAL ADVISERS//MR GILES

CAOFF//MR SIBSON

PS/NO 10.

PAGE

2

UNCLASSIFIED

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