TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 20

J S Wall Esq, CMG, LVO

10 Downing Street

bam

S

HONG KONG: MFN STATUS FOR CHINA

A

B

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, and the House Ways and Means Committee will

hold a hearing on 12 June.

C

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 then recommends that the Prime

Minister might make a statement in response to an

atso

LOUABB/CC