TNAG-2242-FCO40-3223-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 30

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FROM:

A R Paul

Masture

Hong Kong Department

DATE:

2 May 1991

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перв.).

CC:

Mr Burns

Mr Davies, FED

Bola Loles

Loler 3/5

Mr Burns, NAD

Mr Bone, ERD

CHINA: MFN STATUS

Α

1.

Your minute of 29 April to Mr Davies (FED) asked for a

note on the present situation as a basis for discussing what

action we should take with the US Administration and perhaps

others, and whether there are ways to shield Hong Kong from

a US decision not to renew MFN status for China.

2.

(

At annex A I attach a summary of the serious effects the

Hong Kong Government judges China's loss of MFN status would have on Hong Kong trade. Over 40,000 jobs could be lost, GDP

growth could be curtailed by up to one third, and over 40%

or US$4.6 billion worth of Hong Kong's reexports from China

to the US could be lost.

3.

The prospects this year for renewal are worse than least

year.

-

the bilateral trade deficit with China has expanded

enormously, according to US calculations, reaching

US$11billion: China now has the third largest bilateral

surplus with the US;

ROZAWM/1

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