TNAG-2080-FCO40-2960-Hong-Kong-politically-sensitive-issues-1991 — Page 20

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Issue

Objective/explanation

I

LO

6

-

Present status/progress

China

interest*

UK

interest*

CONFIDENTIAL

Secretary for Trade and Industry (Cont'd)

Taiwan's

Application for

Contracting Party

Status in the GATT

Renewal of Most Favoured Nation (MFN) status for China by the US

Taiwan applied for GATT membership on 1 January

1990 on behalf of the Customs Territory of Taiwan, Penghu, Kinmen and Matsu.

Under US legislation, MFN status for certain countries, including China, is subject to the issue on an annual basis of a waiver certifying that the country concerned does not practise a restrictive emigration policy. China's MFN status expires on 3 July each year and President Bush is required to announce by 3 June each year whether he intends to renew MFN status

for China. Since June

1989, several bills have been introduced in Congress

Despite extensive lobbying by Taiwan, the issue has not been formally discussed in the GATT due to PRC's objection. The US has sounded out the views of GATT members on Taiwan's application from the legal, trade and political perspectives. The outcome of Taiwan's lobbying in Geneva in April suggests that given the political implications, GATT members will remain reluctant to take open, formal positions in the foreseeable future.

President Bush announced on 24 May 1990 his decision to extend MFN status to China for another year.

Recently, there are clear signs of a shift in

Congressional sentiments to conditional renewal for China's MFN status next year. Varies pieces of legislation have been introduced. However, any bill proposing conditional renewal would face considerable uncertainty

unless it could be processed under fast track

X

X

X

X

CONFIDENTIAL ##

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