TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 182

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Classification

OUT TELEGRAM (CONT)

CONFIDENTIAL

Caveat

Precedence

IMMEDIATE

nor hinder its ability to administer the territory effectively.

These considerations have been reflected in our discussions with

the Chinese over the airport. It is important that the Hong

Kong Government has the ability to manage the project

efficently. 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 negotiatiors will be in Peking for talks

scheduled to take place on 18-22 May.

I hope that in private contacts with your interlocutors in

China, you 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.

You may also wish to note that Hong Kong will be seriously

affected if the United States does not to renew China's Most

Favoured Nation trade status. A decision on this is expected

shortly. We have therefore lobbied the US Administration in

support of renewal of that status because of Hong Kong. We have

told the Chinese Government that we are doing so: but we have also explained that the prospects of this lobbying succeeding would be enhanced if our public differences over the airport could be resolved quickly. You may wish to make this point if

an opportunity arises.

Ends

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