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political asylum.
7. There has been considerable press interest in his
departure both in Hong Kong and internationally.
reports have been fairly accurate.
Press
Possible withdrawl of China's Most Favoured Nation
Status
8. President Bush will have to decide shortly whether to
renew China's Most Favoured Nation (MFN) status. He is
conscious that the mood on the Hill is very much against
renewal because of Chinese inflexibility in responding to
previous US overtures.
10. Both we and the Hong Kong Government have been
lobbying vigourously.
The Foreign Secretary raised this
issue recently with Mr Baker. The Governor has also
written to key Senators and Congressmen.
11. The Hong Kong Government have calculated that
withdrawal of China's MFN status could result in the loss
of 20,000 jobs in Hong Kong and at least 1% of GDP. It
would also be a severe blow to confidence and cut across
our efforts to mobilise international support for Hong
Kong. We are preparing a message for the Prime Minister
to send to President Bush.
EELAHG
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