CONFIDENTIAL

FM FCO

TO PRIORITY PEKING

TELNO 643

OF 201825Z OCT 93

CONFIDENTIAL

The tut Sup. низ рас

MU 02114

RECE C

- 3 NOV 1993

52

167512

MDLOAN 3486

Lactates

INDEA

INFO PRIORITY WASHINGTON, BONN, PARIS, TOKYO INFO PRIORITY UKREP JLG HONG KONG, HONG KONG INFO SAVING BTCO TAIPEI

PERSONAL FOR HEADS OF MISSION

HONG KONG PERSONAL FOR POLITICAL ADVISER

PART ONE OF THREE:

INFORMAL TALKS ON CHINA

PA

SUMMARY

1.

A worthwhile day of talks which increased understanding among participants of each other's policies towards China. US presentation of its new policy of engagement. Useful expressions of willingness to help over Hong Kong (recorded in MIFT). General agreement that this kind of consultation filled a gap.

DETAIL

2.

Asia Directors of the UK, US, France, Japan and Germany met on 18 October at Chevening for a day's informal talks on China. It was agreed to keep this confidential: if it leaked we would say that the talks were about Asia/Pacific issues generally. INTRODUCTORY STATEMENTS

3.

Coles (UK, Chairman) invited each delegation to begin by outlining its general approach. Hum (UK) led off. Britain's relationship with China was particularly intensive but dominated by the Hong Kong issue. We wished to have a broader dialogue but were constrained by Chinese attitudes and behaviour, by our own public opinion and by the remaining EC measures.

4.

Lord (US) then summarised the ups and downs of US/China relations. One problem was that China was not used to dealing with other countries as equals. After Tiananmen, President Bush had been criticised as being "too soft". For the first time since 1971 China policy had become a controversial issue in Congress. Clinton appreciated China's importance but had condemned Bush's position on MFN. In office, he had tried to strike a balance by setting conditions for MFN renewal but making them achievable and doing so by executive order. No-one wanted

1

PAGE CONFIDENTIAL

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