Kis. Jesy
147
[ MMB 040/4 Cuphe
HKD
2716
CALL ON THE SECRETARY OF STATE BY THE US DELEGATION TO
BAPG 50th ANNIVERSARY CELEBRATION
China: Renewal of MFN status
Points to make
-
Damage to Hong Kong economy if not renewed: 43,000 jobs
lost, halving of current GDP growth, and loss of USD 9-12 bn
trade.
- At a particularly difficult time in Hong Kong's history.
Renewal with conditions also damaging.
Introduces
uncertainty resulting in disincentive to investment.
- Substantial US interests/investment could also be damaged. US largest Hong Kong investor USD 6 bn, 900 companies
(140 factories).
-
Understand worries about China's record on human rights and non-proliferation. Also particular US concerns about bilateral trade surplus, textile quotas, and intellectual property protection.
But easier to effect change in China by maintaining trade and contacts rather than isolating it.
ATPADN/1
TG
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