CONFIDENTIAL

[hat then g

Wit wider than

intellectua

in Hong Kong to anodyne expressions of support for the JD, and to minimise the danger that Chinese policy on Hong Kong might become

a factor in their relations with other Western countries. They

made an issue of internationalisation at JLG XIV in December

1989. This boiled down to a message that discussion of the

future of Hong Kong by HMG with third countries and in

international fora was unacceptable. They claim that Hong Kong ·

is a matter for Britain and China until 1997, and an internal

matter for China alone thereafter. (We disagree with this

interpretation; both the JD and international law assure us à

continued locus in assuring full implementation of the JD).

The Hong Kong press have reported though subsequently

played down that the Chinese considered "blatant and

7.

irresponsible internationalisation" as one of 8 contingencies

which could provoke them to intervention in Hong Kong pre 1997.

Pressure points

8.

accom

issues

China's public stance is invariably to reject any implication that she would be influenced by international pressure. But the facts sometimes contradict this. For example,

a range of market. during the negotiations with the US, on intellectual property rights) (the Special 301 negotiations) China maintained that she would not submit to US pressure. But on the last day before US retaliation took effect, China signed a compromise agreement.

9.

The

US leverage over China and the high-profile US approach to human rights issues there, makes China particularly neuralgic to

any sign of US involvement in Hong Kong political issues.

US/Hong Kong Policy Act 1992 (the McConnell Act) required the Administration to report regularly to the Congress on a number of aspects of US relations with Hong Kong and on the development of democratic institutions in Hong Kong. China opposed it (rather

ineptly) but dropped the subject after it was passed. The threat

of withholding MFN is a powerful lever (para 13 below). There

internat.NAT

JEB

CONFIDENTIAL

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do evidence that in ver

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Hong Kury

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