CONFIDENTIAL
146171
MDHIAN 0139
10. I REPLIED TAHT IT WAS IN OUR COMMON INTERESTS TO SEE CHINA RETAIN MFN, BOTH BECAUSE CHINA'S PROSPERITY HELPED HONG KONG GENERALLY, AND BECAUSE OF THE VOLUME OF U S/CHINA TRADE PASSING THROUGH HONG KONG. WE WOULD DO WHAT WE COULD TO HELP BUT A LOT OF CONGRESSMEN WERE CONCERNED MORE WITH THE POLITICAL ASPECTS OF MFN.
IT WAS EASIER FOR US TO ARGUE CHINA'S CASE IF HONG KONG/ CHINA RELATIONS WERE GOOD AND THERE WERE NO PUBLIC ROWS.
LI SAID THAT THE P R C HAD GOOD RELATIONS WITH THE US GOVERNMENT, BUT NOT THE CONGRESS. COULD I SUGGEST WHOM THEY SHOULD INVITE TO VISIT CHINA ? I SAID THAT I WOULD BE HAPPY TO SUGGEST SOME NAMES.
WORLD ECONOMIC OUTLOOK.
11. LI WAS PESSIMISTIC FOR THE SHORT TERM BECAUSE OF THE RECESSION IN THE WEST, THE DISORDER IN EASTERN EUROPE AND THE USSR, AND THE GULF WAR. HOWEVER HE FELT THAT INCREASED HONG KONG/CHINA ECONOMIC RELATIONS WOULD LESSEN THE IMPACT ON HONG KONG OF WORLD ECONOMIC PROBLEMS. IN THE LONG TERM, CHINA WAS MORE OPTIMISTIC, BUT WAS WORRIED ABOUT THE EMERGENCE OF BLOCS, AND HENCE PROTECTIONIST POLICIES, IN EUROPE AND THE AMERICAS. ASIAN-PACIFIC COUNTRIES WOULD HAVE TO STRENGTHEN THEIR COOPERATION.
12. H M A PEKING SAID THAT HE COULD ASSURE CHINA THAT THE UK WAS OPPOSED TO ''FORTRESS EUROPE'', AND POINTED OUT THAT CHINA COULD USE THE BRIDGE OF HONG KONG AS A SPECIAL LINK TO UK AND THE EC.
13. I ADDED THAT HONG KONG ALSO HOPED THAT THE EC WOULD NOT BECOME. PROTECTIONIST. HONG KONG WAS ALSO AN IMPORTANT BRIDGE TO JAPAN. WE WERE NOT IN FAVOUR OF BLOCS BUT WANTED TO BE PART OF ANY DISCUSSIONS ON ASIAN-PACIFIC TRADE. WE WERE THEREFORE KEEN TO JOIN APEC.
It
14. LI REPLIED THAT HONG KONG WAS A BRIDGE TO THE WHOLE WORLD''. CHINA WAS POSITIVE ABOUT APEC. BUT NOW WAS NOT THE TIME TO DECIDE TO JOIN.
MY INVITATION TO VISIT HONG KONG.
15. I INVITED LI TO VISIT HONG KONG, EITHER IN ITS OWN RIGHT OR WHILST TRANSITTING, TO SEE THE ''BRIDGE'' FOR HIMSELF.
HE SHOULD ALSO LET ME KNOW IF HONG KONG COULD HELP ON ANY MATTERS OF MUTUAL INTEREST.
DONALD
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