XN000022-1994-05-27 — Page 3

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FRIDAY, MAY 27, 1994

RENEWAL OF CHINA'S MFN STATUS

HAS

THE DEPUTY TO THE GOVERNOR, MRS ANSON CHAN, TODAY (FRIDAY) WELCOMED PRESIDENT CLINTON'S DECISION TO RENEW CHINA'S NOST FAVOURED NATION (MFN) TRADING STATUS FOR ANOTHER YEAR.

"PRESIDENT CLINTON'S DECISION то RENEW CHINA'S MEN STATUS WITHOUT ATTACHING CONDITIONS FOR NEXT YEAR'S RENEWAL AND TO DELINK HUMAN RIGHTS FROM THE ANNUAL EXTENSION OF CHINA'S MEN STATUS TS GOOD NEWS FOR HONG KONG. THE DECISION HAS REMOVED A SIGNIFICANT AREA OF UNCERTAINTY IN THE IMMEDIATE FUTURE," SHE SAID.

"WE KNOW THAT THE U.S. ADMINISTRATION TOOK KONG'S CONCERNS AND WE ARE GRATEFUL FOR THAT.

INTO ACCOUNT HONG

"BUT WE ARE CONCERNED ABOUT THE INTRODUCTION OF AN IMPORT BAN AGAINST CERTAIN CHINESE PRODUCTS," MRS CHAN SAID.

"WE HOPE THAT, BECAUSE OF ITS VERY LIMITED SCOPE, THE IMPORT BAN WILL NOT CAUSE SIGNIFICANT DAMAGE TO CHINA'S TRADE AND ECONOMY AND WILL NOT LEAD TO A DETERIORATION IN U.S.-CHINA RELATIONS.

"THE UNITED STATES AND CHINA ARE HONG KONG'S TWO TRADING PARTNERS AND GOOD RELATIONS BETWEEN THEM ARE A VITAL IN OUR LONG-TERM SUCCESS, SHE SAID.

**

LARGEST FACTOR

"THE GOVERNMENT IS COMMITTED то FREE TRADE AS A GENERAL PRINCIPLE AND BELIEVES THAT FREE TRADE AND OPEN MARKETS HELP TO PROMOTE ECONOMIC AND SOCIAL PROGRESS.

"WE HOPE THAT PRESIDENT CLINTON'S DECISION WILL PAVE THE WAY FOR A MORE CONSTRUCTIVE AND A MUTUALLY BENEFICIAL RELATIONSHIP BETWEEN OUR TWO LARGEST TRADING PARTNERS, MRS CHAN SAID.

DEPUTY TO GOVERNOR MEETS MEDIA

FOLLOWING IS THE TRANSCRIPT OF THE MEDIA SESSION BY THE TO THE GOVERNOR, MRS ANSON CHAN, AT CENTRAL GOVERNMENT OFFICES' AT NOON TODAY (FRIDAY):

DEPUTY LOBBY

THE

AND

MRS CHAN : THE PRESIDENT'S DECISION TO RENEW MPN AND TO DELINA HUMAN RIGHTS ISSUE FROM THE MFN ISSUE IS GREAT NEWS FOR HONG KONG WE WARMLY WELCOME THE PRESIDENT'S DECISION. I THINK THAT THE PRESIDENT HAS SHOWN REAL LEADERSHIP AND GREAT COURAGE IN MAKING THIS DECISION. IT WILL MOVE THE US-CHINA RELATIONSHIP ON TO A MUCH BROADER FRONT AND I BELIEVE IN THE LONGER RUN WILL ENABLE BOTH SIDES TO DEVELOP A MORE CONSTRUCTIVE AND MORE LONG LASTING RELATIONSHIP, AND THIS MUST BE GOOD NOT ONLY FOR THE UNITED STATES AND CHINA

ALSO FOR HONG KONG AND FOR THE ENTIRE EAST ASIAN REGION.

BUT

/REPORTER: