TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 169

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PARTICULAR PRIME MINISTER JOHN MAJOR, WOULD CONTINUE THIS EFFORT.

5. SONG WAS CONCERNED THAT MY DEMARCHE, WHILE CONFIRMING THAT THE BRITISH GOVERNMENT WOULD CONTINUE ITS EFFORTS ON CHINA'S BEHALF ALSO SEEMED TO IMPLY A CERTAIN CONDITIONALITY. SONG HOPED THAT HMG'S EFFORTS WOULD CONTINUE SINCE THLUEY REPRESENTED ONE ASPECT OF THE FRIENDLY RELATIONS EXISTING BETWEEN OUR TWO GOVERNMENTS. MOREOVER, BRITAIN ALSO HAD COMMON INTERESTS WITH CHINA IN THIS REGARD.

6. I SAID THAT I WISHED TO CLEAR UP THIS APPARENT MIS-UNDERSTANDING ON CONDITIONALITY. WE WERE NOT SAYING THAT OUR SUPPORT FOR EXTENSION OF CHINA'S MFN STATUS WAS CONDITIONAL BUT THAT THE EFFECTIVENESS OF OUR REPRESENTATIONS IN CONGRESS AND

ELSEWHERE WOULD BE INCREASED SUBSTANTIALLY IF CHINA COULD MAKE SOME MOVEMENT IN THE AREAS I HAD JUST DESCRIBED. SPEAKING PERSONALLY, I SAID THAT MFN STATUS WAS OF COURSE SOMETHING CONFERRED BY BOTH SIDES BUT THAT IN PRACTICAL TERMS IT WAS

NECESSARY TO CONSIDER THE BALANCE OF TRADE AND THE COMPOSITION OF TRADE BETWEEN THE TWO COUNTRIES. I ALSO SAID THAT ON MEN HMG'S VIEW OF CHINA'S ARGUMENTS WAS NOT THE MOST IMPORTANT FACTOR : THE

KEY PARTY TO CONVINCE WAS CONGRESS.

7. SONG THANKED ME FOR EXPLAINING THESE POINTS AND UNDERTOOK TO CONVEY THE MESSAGE TO HIS SUPERIORS. HE SAID THAT CHINA OF COURSE UNDERSTOOD WHERE THE PRESENT DIFFICULTIES ON THE EXTENSION OF MFN STATUS LAY, ESPECIALLY THE IMPORTANCE OF CONGRESS. WITH REGARD TO DISPUTES IN THE ECONOMIC AND TRADE FIELDS CHINA HAD ALREADY TAKEN CERTAIN MEASURES AND WOULD TAKE MORE ON INTELLECTUAL PROPERTY AND THE TRADE BALANCE. IF THE US WANTED TO USE CHINA'S HUMAN RIGHTS RECORD AS PRESSURE ON THE CHINESE GOVERNMENT THIS WAS NOT ACCEPTABLE. SONG REITERATED THAT HE APPRECIATED HMG'S GOOD INTENTIONS TOWARDS CHINA OVER MFN..

COMMENT.

8. THE VERY FACT THAT SONG SAID THE TWO ISSUES OF RENEWAL OF CHINA'S MFN STATUS AND THE AIRPORT NEGOTIATIONS COULD NOT BE COUPLED INDICATES THAT THE CHINESE ARE ALREADY THINKING ALONG THESE LINES.

COATES

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