XN000022-1993-05-12 — Page 18

WEDNESDAY, MAY 12, 1993

THIS ONE.

SOME HONOURABLE MEMBERS HAVE COMMENTED ON THE LIKELY OUTCOME OF YEAR'S MFN DEBATE IN THE U.S. THE SITUATION IS STILL A FLUID U.S. ASSISTANT SECRETARY OF STATE MR WINSTON LORD IS IN BEIJING RIGHT NOW FOR DISCUSSIONS WITH THE CHINESE AUTHORITIES, THE OUTCOME OF WHICH WILL CLEARLY HAVE A BEARING ON THE MFN ISSUE. THE DEMOCRATIC LEADERSHIP IN CONGRESS WOULD LIKE TO WORK WITH A DEMOCRATIC PRESIDENT AND LET HIM TAKE THE LEAD ON THE ISSUE. THERE ARE MANY IN CONGRESS WHO ARE PRESSING FOR CONDITIONAL RENEWAL. HOWEVER, AND THIS MAY COME AS A SURPRISE TO SOME HONOURABLE MEMBERS, THERE ARE ALSO A NOT INSIGNIFICANT NUMBER OF DEMOCRATIC SENATORS AND CONGRESSMEN WHO ARE ARGUING THE OPPOSITE CASE. THEY INCLUDE THE 14 DEMOCRATIC MEMBERS OF THE WAYS AND MEANS COMMITTEE OF THE HOUSE OF REPRESENTATIVES WHO RECENTLY SIGNED A LETTER ON MFN TO THE WHITE HOUSE WHICH STATED : IT IS OUR FIRM BELIEF THAT IT IS IN THE BEST INTEREST OF THE UNITED STATES TO RENEW CHINA'S MFN STATUS UNCONDITIONALLY,” THERE IS ALSO INTENSE PRESSURE FOR UNCONDITIONAL RENEWAL FROM THE U.S. BUSINESS COMMUNITY. ALTHOUGH PRESIDENT CLINTON'S INCLINATIONS ARE CLEAR, HE HAS APPARENTLY NOT YET MADE UP HIS MIND. WITH THREE WEEKS TO GO BEFORE THE DEADLINE, IT STANDS TO REASON THAT HE WILL NOT MAKE A FINAL. DECISION UNTIL HE HAS RECEIVED MR LORD'S REPORT ON THE OUTCOME OF HIS TALKS IN BEIJING. AND EVEN THEN, IT IS LIKELY FOR OBVIOUS REASONS, THE PRESIDENT WOULD NOT ANNOUNCE HIS DECISION UNTIL JUST BEFORE THE DEADLINE.

||

THE UNITED KINGDOM GOVERNMENT IS FULLY AWARE OF THE IMPORTANCE то HONG KONG OF THE UNCONDITIONAL RENEWAL OF CHINA'S MFN STATUS. WHILE HONG KONG POSSESSES FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS, THE UK GOVERNMENT HAS ALL ALONG BEEN VERY SUPPORTIVE OF HONG KONG'S STANCE AND HAS IN RECENT MONTHS EXPRESSED ITS SUPPORT TO THE U.S. GOVERNMENT AT VARIOUS LEVELS, INCLUDING THE HIGHEST LEVEL. THAT IS AS ONE HONOURABLE MEMBER HAS POINTED OUT BETWEEN THE PRIME MINISTER AND THE PRESIDENT. OUR ECONOMIC AND TRADE OFFICE AND THE BRITISH EMBASSY IN WASHINGTON HAVE ESTABLISHED A CLOSE WORKING RELATIONSHIP WITH EACH OTHER ON THIS VERY IMPORTANT ISSUE.

IN CONCLUDING MY COMMENTS ON THE MOTION, WHICH THE OFFICIAL MEMBERS SUPPORT, I WOULD LIKE TO STRESS THAT HONOURABLE MEMBERS MAY REST ASSURED THAT THERE WILL BE NO LET-UP IN THE GOVERNMENT'S EFFORTS TO LOBBY FOR UNCONDITIONAL RENEWAL OF MFN. IF THE MOTION IS CARRIED, WE WILL OF COURSE CONVEY IT TO THE UK GOVERNMENT AND HAVE THAT THE UK GOVERNMENT WILL CONTINUE TO COMMUNICATE ITS HONG KONG'S POSITION TO THE U.S. GOVERNMENT AS NECESSARY.

NO DOUBT SUPPORT OF

THANK YOU.

15