TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 127

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Classification

CONFIDENTIAL

OUT TELEGRAM CONTI

IMMEDIATE

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 meet 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 Japanese Government will lend its support to these efforts, in the interests of the prosperity of Hong Kong. MESSAGE ENDS

2. A signed original will not be sent.

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Y100 CON 58294

Catonword:

**DOK No. C107C

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