TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 18

ни

144

21 June 1991

Pear Stephen

IN

Нав

2

090/4

JUN 199

Foreign & Commonwealth Office

M London SW1A 2AH

Malox 226/6

Mr Furde

Hong Kong: MFN Status for China

24/%

As you will recall, the Prime Minister raised this issue with President Bush when they met in Bermuda in March. President Bush said that the Hong Kong argument was a good one to use with Congress. When they spoke again by telephone on 23 May President Bush said it would be very helpful if the Prime Minister could make a statement or talk or write to leading Congressmen.

The President has since decided to renew MFN status, but if sufficient opposition can be mustered in Congress his decision could be voted down or conditions could be attached. Congress is likely to vote on MFN in the first half of July.

We have consulted Sir A Acland about the most effective manner and timing of Prime Ministerial intervention. In the first instance he is writing to Congressmen making clear that the Prime Minister is closely engaged and spelling out the Hong Kong considerations. He also recommends that the Prime Minister might make a statement in response to an inspired PQ, which he could circulate. The best time for this would be shortly before the Senate vote, expected some time between the 4th July holiday and the summer recess on 5 August. The Foreign Secretary, who has already written to Secretary Baker, referring to the discussions between the President and Prime Minister, supports this recommendation.

We are now consulting Washington and Hong Kong about the wording of the proposed statement and, unless you disagree, I shall write again soon with a text.

J S Wall Esq

10 Downing Street

ens ever ей

(S L Gass)

Private Secretary