TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 118

assification CONFIDENTIAL

OUT TELEGRAM (CONT)

Caveat

Piececence

IMMEDIATE

the Chinese over the airport. It is important that the

Hong Kong Government has the ability to manage the project

efficiently. The Chinese Government have concerns about the

effect of the project on the financial position of Hong Kong

after 1997: we have made proposals which should met these

concerns. Our negotiators are currently in Peking for talks on

these matters.

I hope that in private contacts with the Chinese authorities

your Government will take the opportunity to emphasise to them

that the international community attach great importance to the

success of the Joint Declaration and to the maintenance of Hong

Kong's Long-term prosperity and stability: and that investor confidence in Hong Kong will be enhanced if Britain and China can cooperate effectively to manage the transition to Chinese

sovereignty.

Hong Kong will be seriously affected if the United States does

not renew China's Most Favoured Nation status. We have

therefore lobbied extensively in the United States in support of

renewal of that status because of Hong Kong.

I hope that the Canadian Government will lend its support to

these efforts, in the interests of Hong Kong's continuing

prosperity.

MESSAGE ENDS

28

29: 2.

30:

HURD

YYYY

ΜΑΙΝ

A signed original will not be sent.

For distribution order see Page

Te UK for HMSO : 31 Dɑ FOODITA M100 DON TR024

Catonword:

STOCK No. C037C

YF37