XN000022-1994-03-09 — Page 5

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WEDNESDAY, MARCH 9, 1994

ALTHOUGH THE GOVERNOR WILL NOT BE GOING TO WASHINGTON THIS YEAR TO LOBBY PERSONALLY FOR MEN RENEWAL, HE CONTINUES TO TAKE THE KEENEST POSSIBLE INTEREST IN SECURING THE RENEWAL OF CHINA'S MFN STATUS AND WILL CONTINUE TO LOBBY STRONGLY FOR UNCONDITIONAL RENEWAL. HE HAS. MADE KNOWN HIS STRONG VIEWS ON THIS ISSUE IN PRESS INTERVIEWS. ONLY' AS RECENTLY AS LAST WEEK, IN AN INTERVIEW PUBLISHED IN THE RASTERN EXPRESS, THE GOVERNOR SAID THAT MEN SHOULD NOT BE "THE ANNUAL HINGE IN CHINESE-US RELATIONS" AND THAT "HUMAN RIGHTS ARE BEST PURSUED THROUGH POLITICAL DIALOGUE RATHER THAN ECONOMIC DECISIONS" THE GOVERNOR WILL CONTINUE TO MAKE KNOWN HIS VIEWS FORCEFULLY IN HIS CONTACTS WITH AMERICAN OFFICIALS, POLITICIANS AND BUSINESSMEN, AND TO THE AMERICAN PUBLIC THROUGH INFLUENTIAL US MEDIA. I HAVE NO DOUBT THAT THE GOVERNOR'S VIEWS ON THIS ISSUE WILL MAKE A SUBSTANTIAL IMPACT ON THOSE IN POSITIONS OF INFLUENCE IN THE US.

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AS WE ANNOUNCED YESTERDAY, IN APRIL THE CHIEF SECRETARY WILL VISIT WASHINGTON, WHERE SHE WILL CONVEY HONG KONG'S CONCERNS ON MFN TO SENIOR MEMBERS OF THE US ADMINISTRATION AND THE US CONGRESS. SHE WILL BE SETTING OUT IN NO UNCERTAIN TERMS HONG KONG'S COMMITMENT TO FREE TRADE AS A GENERAL PRINCIPLE AND THE IMPORTANCE TO HONG KONG OF THE UNCONDITIONAL RENEWAL OF CHINA'S MFN STATUS IN THE US. THE CHIEF SECRETARY IS A PERSUASIVE AND FORCEFUL REPRESENTATIVE OF HONG KONG AND, AS OUR FIRST LOCAL CHIEF SECRETARY, MRS CHAN WILL BE ABLE ΤΟ CONVEY TO HER AMERICAN INTERLOCUTORS HER OWN INSIGHTS ON HONG KONG'S SITUATION AND GIVE FRESH IMPETUS TO THE HONG KONG ARGUMENT.

DR THE HONOURABLE HUANG CHEN-YA HAS PROPOSED AN AMENDMENT TO THE ORIGINAL MOTION URGING NOT ONLY THE UK GOVERNMENT TO LOBBY FOR MEN RENEWAL BUT ALSO THE CHINESE GOVERNMENT TO IMPROVE HUMAN RIGHTS CONDITIONS IN ORDER TO SECURE MFN RENEWAL. IT WOULD BE TEMPTING TO THINK THAT SUCH AN APPEAL TO CHINA WOULD BE ENTIRELY LOGICAL, GIVEN THAT PRESIDENT CLINTON'S EXECUTIVE ORDER HAS PLACED THE ONUS ON CHINA TO MAKE "OVERALL, SIGNIFICANT PROGRESS" IN HUMAN RIGHTS BEFORE SHE IS ELIGIBLE FOR MFN RENEWAL. NEVERTHELESS, WE HAVE DECIDED TO ABSTAIN FROM VOTING ON THIS AMENDMENT BECAUSE OF THE FIRM VIEW WHICH WE HAVE CONSISTENTLY HELD THAT IT WOULD NOT BE APPROPRIATE TO MIX POLITICS WITH TRADE; NOR WOULD IT BE APPROPRIATE TO USE MFN AS AN INSTRUMENT TO ACHIEVE POLICY OBJECTIVES NOT RELATED TO TRADE. AS I SAID IN THIS COUNCIL LAST YEAR, THE GRANT OF MPN STATUS IS NOT A PREFERENTIAL TREATMENT : IT IS INSTEAD THE NORMAL CONDITION UNDER WHICH INTERNATIONAL TRADE IS CONDUCTED AND THE STANDARD TREATMENT FOR AMERICA'S TRADING PARTNERS, INCLUDING EVEN COUNTRIES SUCH AS IRAN AND LIBYA.

IF

ALSO, WE ARE OPPOSED TO CONDITIONING MEN, OR CUTTING OFF

MEN, CHINA DOES NOT APPEAR TO HAVE SATISFIED THE CONDITIONS IN THE PRESIDENT'S EXECUTIVE ORDER, BECAUSE OF OUR BELIEF THAT TRADE IS THE MOST RELIABLE AGENT OF CHANGE FOR THE BETTER. CUT OFF TRADE AND DIALOGUE WITH CHINA, AND YOU CUT OFF A MOST POTENT SOURCE OF INFLUENCE ON CHINA. YOU WILL BE CUTTING OFF THE CHANCE OF MANY MILLIONS IN CHINA TO HAVE SUSTAINED ACCESS TO THE OUTSIDE WORLD THROUGH TRADE, AND TO ENGAGE FREELY IN THE EXCHANGE OF IDEAS AND INFORMATION. ONE ONLY HAS TO LOOK AT WHAT HAS HAPPENED IN SOUTHERN CHINA TO APPRECIATE THE WAY IN WHICH TRADE AND DIALOGUE HAVE HELPED TO IMPROVE CONDITIONS ALL ROUND, NOT JUST MATERIAL CONDITIONS BUT ALSO, FOR EXAMPLE, THE ABILITY OF INDIVIDUALS TO CHOOSE WHERE TO LIVE AND WORK.

/THE IMPORTANCE